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Ukraine leader 'seeks loans' in Russia, amid pro-EU rallies | Ukraine leader 'seeks loans' in Russia, amid pro-EU rallies |
(about 11 hours later) | |
Ukrainian President Viktor Yanukovych is discussing closer co-operation with Russia, as protests continue in Ukraine over his move not to sign an EU deal. | |
Securing badly needed loans and a discount on Russia's gas are reportedly on the agenda as Mr Yanukovych meets President Vladimir Putin. | |
But pro-EU protesters in Ukraine fear Mr Yanukovych may sign an accord tying Kiev to the Russian-led Customs Union. | But pro-EU protesters in Ukraine fear Mr Yanukovych may sign an accord tying Kiev to the Russian-led Customs Union. |
His U-turn on the EU association deal last month sparked the mass protests. | His U-turn on the EU association deal last month sparked the mass protests. |
Mr Yanukovych has admitted his decision was influenced by heavy pressure from Russia. | Mr Yanukovych has admitted his decision was influenced by heavy pressure from Russia. |
The current protests, the largest since Ukraine's 2004 Orange Revolution, are pushing for the resignation of Mr Yanukovych and his government, and snap elections. | |
'Wrong' visit | 'Wrong' visit |
Mr Yanukovych was shown with Mr Putin during their meeting on Tuesday afternoon. | |
With talks on resuming credit from the International Monetary Fund stalled, Ukraine requires urgent financial assistance in the coming months to keep the economy afloat. | With talks on resuming credit from the International Monetary Fund stalled, Ukraine requires urgent financial assistance in the coming months to keep the economy afloat. |
Kiev also needs to find about $17bn (£10bn) next year to pay its outstanding gas bill to Russia. | |
Ahead of the Moscow meeting, the Ukrainian foreign ministry dismissed media reports that Customs Union deals could be signed by Mr Yanukovych and Mr Putin. | Ahead of the Moscow meeting, the Ukrainian foreign ministry dismissed media reports that Customs Union deals could be signed by Mr Yanukovych and Mr Putin. |
However, Mr Putin's aide, Andrey Belousov, was quoted as saying that such agreements may be on the agenda. | However, Mr Putin's aide, Andrey Belousov, was quoted as saying that such agreements may be on the agenda. |
Vitali Klitschko, a Ukrainian opposition leader, said "no-one from the media or amongst Ukraine's citizens knows the true aim of this visit and we will only know afterwards". | |
"I'm sure that the visit is wrong and nobody knows the conditions of these negotiations," he added. | "I'm sure that the visit is wrong and nobody knows the conditions of these negotiations," he added. |
"If the (Customs Union) agreement is signed, he (Mr Yanukovych) can remain in Moscow and not return to Kiev," another opposition leader, Arseniy Yatsenyuk, warned. | |
If he were to sign, it would enrage the crowds in Kiev even more, says our correspondent Steve Rosenberg. | |
The opposition is now planning another huge rally later on Tuesday. | The opposition is now planning another huge rally later on Tuesday. |
Call for EU cash | Call for EU cash |
Meanwhile, EU foreign ministers on Monday used a high-level meeting to reassure Russia that a possible association free trade deal with Ukraine (guide here) would not undermine Moscow's interests. | |
Supporters say closer ties with the EU could make the economy more open, transparent and prosperous, with greater competition and protection for investors. | |
But the EU partnership requires far-reaching and expensive reforms, which the government says would put at risk many enterprises reliant on trade with Russia. | |
Moscow has already put economic pressure on Ukraine, with customs delays and a ban on Ukrainian chocolates, and could escalate such measures. | |
Ukraine relies on imports of Russian gas - and heavy energy-intensive industries in eastern Ukraine are especially anxious to keep the gas price down. Some 75% of Ukraine's engineering exports go to Russia. | |
Russia fears that such a deal would damage the country's economy by letting in a massive flow of EU products via Ukraine. | Russia fears that such a deal would damage the country's economy by letting in a massive flow of EU products via Ukraine. |
Moscow wants Kiev to join the Customs Union instead of signing the EU pact. | Moscow wants Kiev to join the Customs Union instead of signing the EU pact. |
The Russian-led union now also includes Belarus and Kazakhstan, but pro-EU protesters regard the grouping as modern embodiment of the Soviet Union. | The Russian-led union now also includes Belarus and Kazakhstan, but pro-EU protesters regard the grouping as modern embodiment of the Soviet Union. |
Mr Yanukovych has said he eventually aims to sign the EU deal. | Mr Yanukovych has said he eventually aims to sign the EU deal. |
But he has said the EU would need to provide at least 20bn euros (£17bn; $27bn) a year to pay for the upgrade of Ukraine's economy. | |