According to a report from the Wall Street Journal,"Russia said Monday it is in talks with Ukraine about a possible loan to help bail out its crisis-stricken neighbor, which is facing possible economic collapse amid large-scale protests over its rejection of a trade deal with the European Union''.
Ukraine is facing its biggest crisis in a decade after President Viktor Yanukovych walked away from the long-planned deal with the European Union last month, saying the terms of the deal and heavy trade pressure from Russia not to sign would have been devastating for the Ukrainian economy .
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.
Russian and Ukrainian officials are entering loan talks ahead of a meeting between Mr. Yanukovych and Russian President Vladimir Putin in Moscow on Tuesday to discuss bilateral trade and economic cooperation.
"Negotiations are under way," a spokesman for Russia's finance ministry told The Wall Street Journal. A spokeswoman for Ukraine's finance ministry had no immediate comment.
The Kremlin said it expected a number of deals to be signed during Tuesday's meeting.
