A bilateral Russian-Ukrainian financial deal signed in December 2013 became defunct following the Euromaidan revolution and Yanukovych's removal from power.
Key Facts
- Eurobond purchase commitment
- $15 billion USD
- Discounted gas price
- $268 per 1,000 cubic metres USD
- Previous gas price
- Over $400 per 1,000 cubic metres USD
- Rate renegotiation interval
- Every three months
- Ukrainian debt default date
- December 2015
- Defaulted debt amount
- $3 billion USD
By the Numbers
Location
Cause → Event → Consequence
Amid the escalating Euromaidan protests in Ukraine, which demanded closer EU integration, President Viktor Yanukovych turned away from a European Association Agreement and sought financial support from Russia instead. Russia leveraged this moment to offer economic incentives as Ukraine faced significant fiscal pressure.
On 17 December 2013, Russian President Vladimir Putin and Ukrainian President Viktor Yanukovych announced an action plan whereby Russia would purchase $15 billion in Ukrainian eurobonds and reduce the price of natural gas supplied to Ukraine from over $400 to $268 per 1,000 cubic metres, with interest rates to be renegotiated every three months.
The agreement never fully took effect. Following Yanukovych's ousting on 22 February 2014, Russia halted eurobond purchases and cancelled the gas discount in April 2014. Ukraine subsequently defaulted in December 2015 on the $3 billion debt to Russia that had been partially disbursed under the plan, triggering a prolonged legal and financial dispute.
Political Outcome
Agreement became de facto defunct after Yanukovych's removal; Russia halted eurobond purchases, cancelled gas discount, and Ukraine defaulted on $3 billion debt by December 2015.