Putin says Ukraine on the brink of bankruptcy

MOSCOW, 12 March (Reuters) – Russian Prime Minister Vladimir Putin said Thursday the Ukraine was on the verge of bankruptcy, but promised that Moscow would not press, its ex-Soviet neighbors over the edge with high gas bills, local news agencies reported.

MOSCOW, 12 March (Reuters) – Russian Prime Minister Vladimir Putin said Thursday the Ukraine was on the verge of bankruptcy, but promised that Moscow would not press, its ex-Soviet neighbors over the edge with high gas bills, local news agencies reported.

The global crisis has destroyed the Ukrainian economy, with industrial production by more than 30 percent over the previous year, GDP shrinks seen at six percent in 2009 and its currency 50 percent of its value against the dollar got a point last year.

"They (Ukraine) are on the brink of bankruptcy and as you know, you should not stop your partner," said Putin said during a visit to a mine in the Siberian city of Novokuznetsk, reported state news agency RIA Novosti.

The relations between Russia and Ukraine have since Western-leaning leaders overcame Moscow rivals in Ukraine's Orange Revolution in 2004 strained.

During his second term as President Putin has developed a personal rivalry led to the Ukrainian President Viktor Yushchenko's efforts to pull Ukraine out of Russia's sphere of influence by joining the NATO military alliance.

But Putin failed to Russia from Ukraine to the collection of fines for breaching the conditions of the gas supply contracts, which could contribute to a financial collapse in the Ukraine.

"UkraineMOSCOW said March 12 (Reuters) – Russian Prime Minister Vladimir Putin said Thursday the Ukraine was on the verge of bankruptcy, but promised that Moscow would not press, its ex-Soviet neighbors over the edge with high gas bills, local news agencies reported .

The global crisis has destroyed the Ukrainian economy, with industrial production by more than 30 percent over the previous year, GDP shrinks seen at six percent in 2009 and its currency 50 percent of its value against the dollar got a point last year.

"They (Ukraine) are on the brink of bankruptcy and as you know, you should not stop your partner," said Putin said during a visit to a mine in the Siberian city of Novokuznetsk, reported state news agency RIA Novosti.

The relations between Russia and Ukraine have since Western-leaning leaders overcame Moscow rivals in Ukraine's Orange Revolution in 2004 strained.

During his second term as President Putin has developed a personal rivalry led to the Ukrainian President Viktor Yushchenko's efforts to pull Ukraine out of Russia's sphere of influence by joining the NATO military alliance.

But Putin failed to Russia from Ukraine to the collection of fines for breaching the conditions of the gas supply contracts, which could contribute to a financial collapse in the Ukraine.

"Ukraine is not in the contracted volumes (gas) and should pay fines. We are to forgive those fines, because we know the reality – they have nothing to pay with," RIA quoted Putin as saying.

Russia was also hard hit by the crisis, but Putin said, put his large financial reserves, it met in a stronger position.

He forecast the government would this year be able to spend 12 percent of GDP in order to alleviate the impact of the crisis. "Our anti-crisis package is larger than in other countries," Putin said in comments on Vesti-24 television.

Ukraine has adopted the International Monetary Fund in order for a budget deficit caused in part by a collapse in prices for steel, an important export.

The IMF and the Ukrainian government said on Wednesday that they are progress in resolving differences in the implementation of a reform program that has delayed the release of a second tranche of 4 billion loan. (Writing by Conor Humphries, Editing by Jon Boyle)

not at the contracted volumes (gas) and should pay fines. We assign these fines, because we know the reality – they have nothing to pay with, "RIA quoted Putin as saying.

Russia was also hard hit by the crisis, but Putin said, put his large financial reserves, it met in a stronger position.

He forecast the government would this year to spend 12 percent of GDP in order to alleviate the impact of the crisis. "Our anti-crisis package is larger than in other countries," Putin said in comments on Vesti-24 television.

Ukraine has adopted the International Monetary Fund in order for a budget deficit caused in part by a collapse in prices for steel, an important export.

The IMF and the Ukrainian government said on Wednesday that they are progress in resolving differences in the implementation of a reform program that has delayed the release of a second tranche of 4 billion loan. (Writing by Conor Humphries, Editing by Jon Boyle)

.

"They (Ukraine) are on the brink of bankruptcy and as you know, you should not stop your partner," said Putin said during a visit to a mine in the Siberian city of Novokuznetsk, reported state news agency RIA Novosti.

The relations between Russia and Ukraine have since Western-leaning leaders overcame Moscow rivals in Ukraine's Orange Revolution in 2004 strained.

During his second term as President Putin has developed a personal rivalry led to the Ukrainian President Viktor Yushchenko's efforts to pull Ukraine out of Russia's sphere of influence by joining the NATO military alliance.

But Putin failed to Russia from Ukraine to the collection of fines for breaching the conditions of the gas supply contracts, which could contribute to a financial collapse in the Ukraine.

"Ukraine is not in the contracted volumes (gas) and should pay fines. We are to forgive those fines, because we know the reality – they have nothing to pay with," RIA quoted Putin as saying.

Russia was also hard hit by the crisis, but Putin said, put his large financial reserves, it met in a stronger position.

He forecast the government would this year be able to spend 12 percent of GDP in order to alleviate the impact of the crisis. "Our anti-crisis package is larger than in other countries," Putin said in comments on Vesti-24 television.

Ukraine has adopted the International Monetary Fund in order for a budget deficit caused in part by a collapse in prices for steel, an important export.

The IMF and the Ukrainian government said on Wednesday that they are progress in resolving differences in the implementation of a reform program that has delayed the release of a second tranche of 4 billion loan. (Writing by Conor Humphries, Editing by Jon Boyle)

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