Russian Prime Minister Vladimir
Putin on Thursday said Ukraine was on the verge of bankruptcy
but promised Moscow would not push its ex-Soviet neighbour over
the edge with high gas bills, local news agencies reported, according to Reuters.
The global crisis has battered Ukraine's economy, with
industrial output down more than 30 percent year-on-year, GDP
seen shrinking six percent in 2009 and its currency losing 50
percent of its value against the dollar at one point last year.
"They (Ukraine) are on the verge of bankruptcy and as you
well know you should not finish off your partners," Putin said
during a visit to a mine in the Siberian town of Novokuznetsk,
state news agency RIA Novosti reported.
Relations between Russia and Ukraine have been strained
since Western-leaning leaders overcame pro-Moscow rivals in
Ukraine's 2004 Orange Revolution.
During his second term as president, Putin developed a
personal rivalry with Ukrainian President Viktor Yushchenko who
spearheaded efforts to pull Ukraine out of Russia's sphere of
influence by joining the NATO military alliance.
But Putin said Russia would refrain from levying fines on
Ukraine for violating the terms of gas supply contracts that
could contribute to a financial collapse in Ukraine.
"Ukraine is not taking the contracted volumes (of gas) and
should pay fines. We will forgive these fines because we
recognize the reality -- they have nothing to pay with," RIA
quoted Putin as saying.
