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| Putin Says Deal With Ukraine Was a Good-Will Gesture | Putin Says Deal With Ukraine Was a Good-Will Gesture |
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| MOSCOW — President Vladimir V. Putin of Russia on Thursday explained his decision to rescue Ukraine with a $15 billion bailout and discounts on natural gas as a gesture of good will given the close historic ties between the two countries. | MOSCOW — President Vladimir V. Putin of Russia on Thursday explained his decision to rescue Ukraine with a $15 billion bailout and discounts on natural gas as a gesture of good will given the close historic ties between the two countries. |
| “I will be very frank with you, and don’t take it as an irony — we very often use the term ‘brother nation’ or ‘sister nation,’ ” Mr. Putin said, seeming buoyant and supremely confident at his annual news conference here. | |
| “We see the current situation, both political and economic, is quite difficult,” Mr. Putin said. “So if we say it is a sister nation, we should do what family members do. We should support our sister nation when in dire straits. This is the No. 1 reason why this decision was taken.” | |
| Mr. Putin’s announcement of the loan and gas deal on Tuesday threw a lifeline to Ukraine’s embattled president, Viktor F. Yanukovich, who has been facing not only a severe and deepening economic crisis but also weeks of civil unrest from protesters who have occupied Independence Square and seized control of several public buildings in Kiev, the capital. | |
| The loan from Russia, using money from its national welfare fund, spares Mr. Yanukovich — at least for the moment — from further negotiations with the International Monetary Fund, which in exchange for an aid package had demanded systemic economic reforms, including some tough austerity measures. | |
| Mr. Putin’s move to offer unilateral assistance is not without risks. The rules for investing money from the Russian national welfare fund require long-term bond ratings of at least AA, while Ukraine’s current rating from both Fitch and Standard & Poor’s is B- with a negative outlook. | |
| But the bailout also underscored Russia’s economic and strategic interests in Ukraine and Mr. Putin’s resolve in keeping Ukraine within the Russian sphere of influence. | But the bailout also underscored Russia’s economic and strategic interests in Ukraine and Mr. Putin’s resolve in keeping Ukraine within the Russian sphere of influence. |
| Russia maneuvered aggressively to dissuade Mr. Yanukovich from signing political and trade agreements with the European Union and, by offering the bailout package, Mr. Putin ensured that Mr. Yanukovich would not revive those accords anytime soon. | |
| To Mr. Putin’s evident glee, his bold steps left European officials stunned, and scrambling for a response. | To Mr. Putin’s evident glee, his bold steps left European officials stunned, and scrambling for a response. |
| Mr. Putin traditionally holds a large news conference in December, spending hours answering questions about the past year. Compared with a year ago, when he seemed tense and appeared to be in pain from a lingering back injury, Mr. Putin on Thursday was in high spirits and eager to spar with reporters. | |
| In recent months, he has recorded a number of foreign policy successes that have established Russia as a force in counterbalancing Western dominance of world affairs. They have included granting temporary asylum to Edward J. Snowden, the former contractor for the National Security Agency who exposed aggressive American surveillance programs; protecting his longtime ally, President Bashar al-Assad, from an American military strike by proposing a plan to destroy Syria’s chemical weapons; and swooping in to help Ukraine. | |
| In just over a month, Mr. Putin will play host to the Winter Olympic Games in Sochi, which he seems clearly to view as integral to his legacy as Russia’s pre-eminent leader of the 21st century. Ahead of the Olympics, Russia has come under criticism for its human rights record, and also for some new legislation, including a law banning propaganda on nontraditional relationships that is widely viewed in the West as an effort to suppress homosexuality. | In just over a month, Mr. Putin will play host to the Winter Olympic Games in Sochi, which he seems clearly to view as integral to his legacy as Russia’s pre-eminent leader of the 21st century. Ahead of the Olympics, Russia has come under criticism for its human rights record, and also for some new legislation, including a law banning propaganda on nontraditional relationships that is widely viewed in the West as an effort to suppress homosexuality. |
| In response to a question about a clash of cultures between Russia and the West, Mr. Putin said that Russia was merely defending its values and traditions, and he suggested that the West was trying to impose its views on others. | |
| “It is not about criticizing somebody,” Mr. Putin said. “It is about protecting us from aggressive behavior on the part of some social groups, which I believe do not just live in a way they like, but they try to aggressively impose their opinion on other people and other countries.” | “It is not about criticizing somebody,” Mr. Putin said. “It is about protecting us from aggressive behavior on the part of some social groups, which I believe do not just live in a way they like, but they try to aggressively impose their opinion on other people and other countries.” |
| In response to a question, Mr. Putin said that he had not met personally with Mr. Snowden, whose disclosures about surveillance programs have changed the way many governments, including some of Washington’s closest allies, view their relationship with the United States. | In response to a question, Mr. Putin said that he had not met personally with Mr. Snowden, whose disclosures about surveillance programs have changed the way many governments, including some of Washington’s closest allies, view their relationship with the United States. |
| “I was not lucky to meet Snowden personally,” Mr. Putin said. “I have many tasks at hand.” | “I was not lucky to meet Snowden personally,” Mr. Putin said. “I have many tasks at hand.” |
| Asked about his relationship with President Obama, in the context of the Snowden situation, Mr. Putin said, “I envy him. I envy him because he can do all this and he is not going to be punished for it.” He also joked: “Well, espionage is one of the oldest professions, along with some other professions that I will not elaborate about.” | Asked about his relationship with President Obama, in the context of the Snowden situation, Mr. Putin said, “I envy him. I envy him because he can do all this and he is not going to be punished for it.” He also joked: “Well, espionage is one of the oldest professions, along with some other professions that I will not elaborate about.” |
| On another security topic, Mr. Putin denied that Russia had deployed short-range ballistic missiles to Kaliningrad, a Russian enclave nestled between Lithuania and Poland, but said that the country may do so as a counterbalance to American efforts to install a missile defense shield in Europe. | On another security topic, Mr. Putin denied that Russia had deployed short-range ballistic missiles to Kaliningrad, a Russian enclave nestled between Lithuania and Poland, but said that the country may do so as a counterbalance to American efforts to install a missile defense shield in Europe. |
| “We haven’t made that decision,” Mr. Putin said, responding to a question from a state-run television channel about reports that the missiles were located in the enclave. “They should calm down,” he said. | “We haven’t made that decision,” Mr. Putin said, responding to a question from a state-run television channel about reports that the missiles were located in the enclave. “They should calm down,” he said. |
| A spokesman for the ministry of defense confirmed this week that the missiles were deployed in western Russia after a German newspaper reported that the missiles were deployed in Kaliningrad, citing satellite surveillance photographs. | |
| The missiles have a maximum range of about 250 miles and can carry a conventional or nuclear payload. | |
| Mr. Putin was perhaps must ebullient in discussing his most recent foreign policy triumph: besting the West in a contest for sway over Ukraine. | Mr. Putin was perhaps must ebullient in discussing his most recent foreign policy triumph: besting the West in a contest for sway over Ukraine. |
| He said that Russia, in moving to block the European Union’s accords with Ukraine, had acted in the best economic interests of Russia and of Ukraine. He said that Russia would have had no choice but to close the door to Ukrainian goods — largely machinery and industrial exports — leaving Kiev relying heavily on agricultural products sold to Europe. | He said that Russia, in moving to block the European Union’s accords with Ukraine, had acted in the best economic interests of Russia and of Ukraine. He said that Russia would have had no choice but to close the door to Ukrainian goods — largely machinery and industrial exports — leaving Kiev relying heavily on agricultural products sold to Europe. |
| “They will have problems selling their machinery and equipment, because they mostly go to the Russian market and I doubt they will be able to increase volumes of exports of agriculture to the European market,” Mr. Putin said. | “They will have problems selling their machinery and equipment, because they mostly go to the Russian market and I doubt they will be able to increase volumes of exports of agriculture to the European market,” Mr. Putin said. |
| He said that European farmers would be loath to make sacrifices for the benefit of Ukraine. “Try to explain to farmers,” Mr. Putin said, “try to explain to them that they need to limit their production for the sake of Ukraine.” | He said that European farmers would be loath to make sacrifices for the benefit of Ukraine. “Try to explain to farmers,” Mr. Putin said, “try to explain to them that they need to limit their production for the sake of Ukraine.” |
| “Not bureaucrats, not officials, but common people who work on the land,” he added. “I would like to see their reaction.” Without manufacturing exports to Russia, Mr. Putin said of Ukraine: “They would become an agricultural annex.” | “Not bureaucrats, not officials, but common people who work on the land,” he added. “I would like to see their reaction.” Without manufacturing exports to Russia, Mr. Putin said of Ukraine: “They would become an agricultural annex.” |
| Economic experts have said that Russia could protect its interests without the severe trade sanctions it had threatened in response to the accords with Europe. Other analysts have said that Mr. Putin’s economic arguments were largely being used to justify his defense of strategic and political interests. | |
| Many Ukrainians say they viewed the accords with Europe as the key to a brighter political and economic future, in large part because European laws and standards would require improvements to the Ukrainian judicial system and would help root out entrenched corruption that has long gripped the Ukrainian government and business sectors. | Many Ukrainians say they viewed the accords with Europe as the key to a brighter political and economic future, in large part because European laws and standards would require improvements to the Ukrainian judicial system and would help root out entrenched corruption that has long gripped the Ukrainian government and business sectors. |
| Mr. Putin stressed the historic, cultural, linguistic and other ties between Russia and Ukraine, which is the most populous of the former Soviet republics. “We had to take this decision because we have a very special relationship with Ukraine,” Mr. Putin said, “not for the sake of the Ukrainian leadership but for the sake of the Ukrainian people.” | Mr. Putin stressed the historic, cultural, linguistic and other ties between Russia and Ukraine, which is the most populous of the former Soviet republics. “We had to take this decision because we have a very special relationship with Ukraine,” Mr. Putin said, “not for the sake of the Ukrainian leadership but for the sake of the Ukrainian people.” |
Andrew Roth contributed reporting. | Andrew Roth contributed reporting. |