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MOSCOW — Russian President Vladimir Putin on Tuesday opened his wallet in the battle with the European Union over Ukraine’s future, saying Moscow will buy $15 billion worth of Ukrainian government bonds and sharply cut the price of natural gas for its economically struggling neighbour.

The announcements came after Putin held talks in Moscow with Ukrainian President Viktor Yanukovych, who is facing massive protests at home for his decision to shelve a pact with the EU in favor of closer ties with Moscow. Russia’s bailout package angered protesters, who immediately accused Yanukovych of selling out the country to the Kremlin and pressed demands for his ouster.

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Washington said the Kremlin agreements would not address concerns of the demonstrators in Kyiv, and German Chancellor Angela Merkel dismissed what she described as a “bidding competition” over Ukraine.

Putin’s move came as Ukraine said it desperately needs to get at least $10-billion in the coming months to avoid bankruptcy. The Fitch ratings agency has given Ukraine’s bonds a B-minus rating, which puts them in “junk bond” territory.