Ukraine's Prime Minister vows stability after Moscow deal
After weeks of protest in Kiev over the government's decision to pursue relations with Moscow instead of Brussels, Prime Minister Mykola Azarov promises stability
Ukraine’s leadership on Wednesday praised a Russia-financed bailout as a guarantee of financial stability, while opposition activists and critics claimed the deal will deepen the country’s economic troubles and increase dependence on Moscow.
Russian President Vladimir Putin on Tuesday pledged to buy US$15 billion worth of Ukrainian bonds and sharply cut the price of natural gas in an effort to relieve political pressure on Ukraine’s embattled president, Viktor Yanukovych.
The Ukrainian economy risks a default next year, and over the past months Yanukovych has actively lobbied both Russia and the European Union for a financial life line, seemingly playing one off the other to see who would offer a better rescue package.
His decision last month to cosy up to Russia triggered a wave of demonstrations that have crystallised into a large, round-the-clock protest camp in Independence Square in Kiev, the country’s capital.
Prime Minister Mykola Azarov told a cabinet meeting that the deal with Russia ensures “people’s confidence in a stable life,” while a strategic trade agreement with Europe would have given Ukraine a “New Year’s present” of “bankruptcy and social collapse”.
“The gas discount will bring absolutely no benefit for Ukrainians. Yanukovych simply agreed on a discount for the oligarchs surrounding him.”
The deal with Moscow, which includes increased access to Russia’s market for Ukrainian exporters and large orders for Ukraine’s manufacturing industry, did nothing to sway the protesters, who have demanded Yanukovych and Azarov resign and a snap election be held next year.