Ukraine PM Says Russia Deal Saved Country From Bankruptcy

Ukraine’s decision to suspend a deal on closer EU ties and sign a Russian aid agreement instead has helped avoid bankruptcy, Prime Minister Mykola Azarov has told ministers in Kiev.

The government’s surprise U-turn on an EU association agreement last month has sparked weeks of mass demonstrations.

But Mr Azarov said the package from Russia would provide stability.

Russia has agreed to buy $15bn (£9.2bn, 11bn euros) of government bonds and slash the price of gas.

Ukraine’s opposition has demanded to know what Ukraine offered Russia in return.

Thousands of pro-EU protesters have been holding rallies in Kiev – occupying the capital’s Independence Square – and other cities in western and central Ukraine.

Critics say President Viktor Yanukovych has sold out to Russia and are calling for him and his government to step down.

But Ukraine’s prime minister defended the deal with Russia in a cabinet meeting on Wednesday.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza