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Putin defends bailout for Ukraine Putin defends bailout for Ukraine
(about 1 hour later)
Russian President Vladimir Putin has said maintaining close links with Ukraine is vital for Russian national interests.Russian President Vladimir Putin has said maintaining close links with Ukraine is vital for Russian national interests.
"We just want to defend our gates," he told journalists in Moscow, days after Russia gave Ukraine a $15bn (£9.2bn; 10.9bn euros) bailout and gas discount."We just want to defend our gates," he told journalists in Moscow, days after Russia gave Ukraine a $15bn (£9.2bn; 10.9bn euros) bailout and gas discount.
Ukraine, he said, was a fraternal state with close industrial ties to Russia.Ukraine, he said, was a fraternal state with close industrial ties to Russia.
Protests have gripped much of Ukraine since President Viktor Yanukovych suspended the EU deal last month.Protests have gripped much of Ukraine since President Viktor Yanukovych suspended the EU deal last month.
The opposition has been demanding to know what, if any, conditions the Kremlin attached to its decision to buy $15bn in Ukrainian government bonds and slash the gas price from more than $400 per 1,000 cubic metres to $268.5.The opposition has been demanding to know what, if any, conditions the Kremlin attached to its decision to buy $15bn in Ukrainian government bonds and slash the gas price from more than $400 per 1,000 cubic metres to $268.5.
Russia's financial help averted a debt crisis for Ukraine in the short term.Russia's financial help averted a debt crisis for Ukraine in the short term.
At a news conference in Kiev on Thursday, Mr Yanukovych said the deal with Moscow did not run counter to Ukraine's course towards European integration.
Mr Putin is known for his marathon, tough-talking annual news conferences, which can run past four hours.Mr Putin is known for his marathon, tough-talking annual news conferences, which can run past four hours.
On other issues addressed on Thursday, heOn other issues addressed on Thursday, he
'Agricultural appendage''Agricultural appendage'
"We always say seriously that Ukraine for us is a fraternal country," Mr Putin said."We always say seriously that Ukraine for us is a fraternal country," Mr Putin said.
"And in a difficult situation, we are always ready to support a fraternal people. I assure you, that is the only objective reason [for the financial aid].""And in a difficult situation, we are always ready to support a fraternal people. I assure you, that is the only objective reason [for the financial aid]."
"We cannot leave our economy unprotected if Ukraine joins the association [agreement]," Mr Putin said."We cannot leave our economy unprotected if Ukraine joins the association [agreement]," Mr Putin said.
He gave as an example of close industrial relations the fact that "nearly 100%" of helicopter engines for Russia's armed forces were manufactured in Ukraine.He gave as an example of close industrial relations the fact that "nearly 100%" of helicopter engines for Russia's armed forces were manufactured in Ukraine.
Ukraine, he argued, would not find a market for the engines elsewhere. The EU, he suggested, was only interested in Ukraine as an "agricultural appendage".Ukraine, he argued, would not find a market for the engines elsewhere. The EU, he suggested, was only interested in Ukraine as an "agricultural appendage".
Ukraine, the Russian president said, would need investment of hundreds of billions of dollars to bring its economy up to EU standards.Ukraine, the Russian president said, would need investment of hundreds of billions of dollars to bring its economy up to EU standards.
Mr Yanukovych blamed Ukraine's current economic problems on the policies of his predecessors, the leaders of Ukraine's pro-Western Orange Revolution.
Asked why the Ukrainian economy was in such trouble, Mr Yanukovych said the gas contract signed with Russia by former Prime Minister Yulia Tymoshenko in 2009 had incurred a loss of $20bn.
Another problem, he said, was the repayment of an IMF loan of $16.4bn negotiated in 2008, and a third factor was the recent fall in trade with Russia and other ex-Soviet states.
Asked about his position on the Customs Union led by Russia, he said that Ukraine only had observer status but he suggested that it could adopt certain clauses.
"Ukraine's government is studying these clauses and, once conclusions are drawn, the corresponding transparent decisions will be taken on which clauses we will adhere to," he said.
Ukraine's pro-EU protesters have rejected any move to join the Customs Union, which was set up in 2010 and includes Russia, Belarus and Kazakhstan.