Russia to buy $15bn of Ukranian bonds, lower gas export prices for Kiev

Russia said it would buy USD 15 billion worth of Ukranian bonds in a move aimed at distancing Kiev from the European Union (EU). President Vladimir Putin announced the purchase of Ukranian bonds with USD 15 billion. Russia does not have any political nor economic conditions in return, affirmed Putin, who was speaking at a news conference following his talks with Ukrainian President Viktor Yanukovych. Putin also said Russia would lower prices of gas exported to Ukraine from USD 400 to USD 268 for every 1,000 cubic meters. Putin said Ukraine's joining of the custom union which consists of Russia, Belarus and Kazakhstan was not discussed during his talks with Yanukovych. Observors said Ukraine would save USD billions because of the new gas prices, and that the purchase of bonds would allow Kiev to stand against the EU pressure to sign the parntership agreement.