Media playback is unsupported on your device

Russia reduces Ukraine gas price

17 December 2013 Last updated at 18:36 GMT

Russia has given Ukraine a discount of almost a third on Russian gas and said it would buy billions of dollars' worth of Ukrainian government bonds.

The moves were announced after talks between Russian President Vladimir Putin and his Ukrainian counterpart Viktor Yanukovych.

The cost of Russian gas supplied to Ukraine has been slashed from more than $400 (£245; 291 euros) per 1,000 cubic metres to $268.5.

Daniel Sandford reports.