Russia can demand early repayment of the loan it is making to Ukraine if the situation warrants, First Deputy Prime Minister Igor Shuvalov said.

"The financial assistance agreement gives us the right to demand that the Ukrainian government repay this loan at any time, backed by the most severe legal consequences," Shuvalov said in an interview with the Rossiya 24 television network when asked if Kyiv, having secured multi-billion dollar financial assistance from Moscow, might turn around and sign the EU association agreement after all.

"Russia has fully secured its rights on the legal plane," Shuvalov said.

Following talks with Ukrainian President Viktor Yanukovych last week, President Vladimir Putin announced that Russia would use money from the National Welfare Fund to buy $15 billion in Ukrainian sovereign Eurobonds, including $3 billion before year-end. The coupons on the bonds, being placed on the Irish Stock Exchange, will pay 5% annually.