The European Union said Sunday that it is ready to offer "substantial" financial aid to the new government of Ukraine to help the country recover from months of political crisis.
“The EU is ready to provide substantial financial assistance for Ukraine and the Ukrainian people once a political solution – on the basis of democratic principles, a commitment to reform and a legitimate government – is in place,” European Commissioner for Economic and Monetary Affairs Olli Rehn said in an interview on the sidelines of the G-20 meeting in Sydney.
Europe’s top economic officer said the money could be drawn from the European Commission’s budget and from EU member states.
“We need to provide Ukraine with a very clear, concrete European perspective. In the near future we are talking about an association agreement, which provides free trade and a substantial financial aid package,” he added.
Russia's Finance Minister Anton Siluanov warned Sunday that Moscow would suspend its planned purchase of Kiev's eurobonds until a new government is formed and Ukraine's economic policy is set.
“We indeed discussed the purchase of eurobonds last week. But since the situation in Ukraine has changed dramatically, we should know who we are dealing with. We plan to wait until a new government is formed to understand its economic policy,” Siluanov told the press as he attended the G-20 meeting in Sydney.
The purchase of $2 billion Ukrainian eurobonds was to be the second part of $15 billion aid package agreed upon by President Vladimir Putin and Ukraine's embattled President Yanukovych in December 2013.
Siluanov said Moscow bought $3 billion worth of Ukrainian bonds in December in a bid to support Kiev's economy, adding that they are continuing the gas supply for Ukraine, with a 30 percent cut in the natural gas price as promised.
Anti-government protests began in late November after Yanukovych shelved a long-anticipated agreement for closer ties with the European Union amid intense pressure from Moscow. Russia later announced a $15 billion bailout for Ukraine's battered economy.
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