Russia to pay Ukraine $3bn for Eurobonds

Russia will transfer $3 billion in payment to Ukraine for Eurobonds on Tuesday, announced Russian Finance Minister Anton Siluanov at a news conference in Moscow on Monday. "The deal was closed on Friday. The funds will be paid on Tuesday, by our estimates," Siluanov  told journalists. He added that another tranche of help will be released next year. The payment is part of a deal agreed between Russia and Ukraine last week under which Kiev will receive $15 billion from Russia in exchange for Ukrainian government-issued bonds. The Ukrainian government, which is expected to repay around $8 billion in foreign debt next year, needs $10 billion to keep its economy afloat. Meanwhile, Russian First Deputy Prime Minister Igor Shuvalov said that Russia can demand that the Ukrainian government repay the loan "at any time." On Thursday, the Russia-Ukraine Intergovernmental Committee held a session headed by presidents Vladimir Putin and Viktor Yanukovych. During the session, several agreements were reached including a deal reducing the price of Russian natural gas for Ukraine to $268.5 per 1,000 m3 and another one allowing Russia to buy $15 billion worth of Ukraine’s eurobonds. Ukraine President Viktor Yanukovych lately refused to sign a landmark association agreement with the European Union. His decision sparked massive protests around the country.