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Russia slashes Ukraine gas price

17 December 2013 Last updated at 17:11 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.

Both of the latest measures are intended to ease Ukraine's financial woes at a time when the country is struggling to avoid default.

Steve Rosenberg reports from Moscow.