World press on Russia-Ukraine deal (December 16, 2013)

"Russia in Talks With Ukraine Over Possible Loan" is an article published today by the Wall Street Journal. 

"A loan and cheaper gas from Russia would be a lifeline for Ukraine's recession-hit economy but would risk further infuriating protesters who have been camped out for weeks on Kiev's main square demanding closer ties with Europe and an end to economic and political dependence on Russia," the article reads.

"Western leaders have urged Ukraine to sign up for International Monetary Fund aid and the EU trade and political-association pact. Russia has suggested Ukraine join a trade union it has formed with other former Soviet republics, offering possible reductions in the price it charges Ukraine for natural gas, thus alleviating pressure on its finances. Earlier this month, Ukraine's First Deputy Prime Minister Serhiy Arbuzov said Kiev needed at least $10 billion to save its failing economy after its gold and foreign reserves dropped by nearly half over the past two years to less than $19 billion in November. Economists say a sovereign default is unlikely and could only happen if Ukraine's reserves shrink further and Kiev fails to agree on aid from either Russia or the IMF. Ukraine has to pay some $9 billion in sovereign debt by the end of 2014."

"Signs of division have also emerged within the EU on how to proceed with Ukraine not committing to the deal. Ukraine's move followed economic threats from Russia and amounted to one of the bloc's biggest foreign-policy setbacks of recent years."

Another article dedicated to the same subject was published today by Bloomberg. It is entitled "Ukraine-Russia Loan Talks Said to Be on Up to $15 Billion." 

"Ukraine is likely to get a discount for Russian natural gas of at least 25 percent from the price it now pays, according to Viktor Medvedchuk, a Ukrainian ally of Russian President Vladimir Putin."

"Putin and Ukrainian President Viktor Yanukovych meet tomorrow in Moscow, and there is a “big probability” that the two countries will sign a gas deal, Ukraine’s Energy Minister Eduard Stavytskyi said today in Kiev, declining to elaborate. Ukraine, in its third recession since 2008 and with foreign-currency reserves at a seven-year low, is seeking a bailout to avoid a default and cheaper fuel to boost the economy. The country last month backed out of a trade deal with the European Union in favor of closer ties with Russia, which provides 60 percent of its natural gas, sparking the biggest protests in almost a decade."