Kiev protesters gather, EU dangles aid promise [View all]

[dipsydoodle]

Source: Reuters

(Reuters) - Thousands of anti-government protesters gathered in central Kiev, rebuilding barricades torn down by police, on Thursday as the European Union held out a promise of increased aid for Ukraine if it signed a trade and cooperation pact.

Ukraine's first deputy prime minister Serhiy Arbuzov flew to Brussels with a high-level delegation seeking billions of euros of aid from the EU in return for signing the agreement, which Kiev suddenly backed away from last month.

He said Ukraine, which is on the brink of bankruptcy, would "soon sign" the accord, but declined to provide any date.

EU enlargement chief Stefan Fuele pledged more aid to Kiev if it signed the agreement, and to help it negotiate a loan from the IMF, but gave no figures.

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Ukraine's Prime Minister Mykola Azarov was quoted as saying on Wednesday he had asked the EU for 20 billion euros ($27 billion) in aid to offset the cost of signing the EU deal.

Read more: http://uk.reuters.com/article/2013/12/13/uk-ukraine-idUKBRE9B908520131213

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The deal which Yanukovich rejected involved support from the EU of 1 billion euros only.

The IMF had already made clear that any loans must be subject to substantial increase in consumer gas prices in the Ukraine where gas is currently sold to consumers at below cost to the government. That was to help ensure ability to repay the loans

Projected amounts involved in effective costs to the Ukraine here :

It remains unclear how much the EU, which has said it will not join a bidding war for Ukraine, is willing to offer. Ukrainian Prime Minister Mykola Azarov estimates the country would need 160 billion euros ($220 billion) to adapt to the free-trade zone proposed by the European Union.

http://hosted.ap.org/dynamic/stories/E/EU_EU_FIGHTING_FOR_UKRAINE?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-12-12-04-51-25 see last but one para in article

$220 billion is a very large hole to fill albeit that is over a period of years.