Ukrainian president agrees to economic deal with Russia

Dec. 17 (UPI) -- Ukrainian President Viktor Yanuovych met with Russian President Vladimir Putin today in Moscow, where the two leaders agreed to an economic plan that impacts industry, agriculture, defense, construction and transport.

Yanukovych described the agreement as economically focused while Putin said "We are ready to look at the possibility of rapprochment in economic and political spheres."

The two countries struck a gas deal in which Russia will give Ukraine steeply discounted gas that could save Ukraine $3.5 billion per year and provide short-term relief to the financially-challenged Ukraine.

Putin emphasized that the deal did not require Yanukovych to agree to any concessions. "This is not tied to any preconditions, nor the increasing, or reducing, or freezing of any social standards, pensions, allowances, or costs. And I'd like to calm everyone down that we didn't even discuss Ukraine's accession to the Customs Union today."

Meanwhile, pro-EU demonstrations continue in Kiev, where protesters oppose Ukraine's economic alignment with Russia. Protests began in November when Yanukoyvch announced Ukraine would not join the EU.

In the last week, the Ukrainian president has sent mixed signals about Ukraine's EU membership. EU foreign policy chief Catherine Ashton emerged from two days of meetings and announced last Thursday that Yanukovych indicated his intention to sign an agreement with the EU.

On Sunday, the EU announced it had suspended trade pact negotiations with Ukraine due to the Ukrainian government's lack of "a clear commitment to sign."

[CNN] [Kyiv Post] [Interfax]