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Thursday, 20 February 2014 | MYT 4:15 PM

Russia is not cancelling Ukraine aid, situation must normalise-Kremlin

MOSCOW (Reuters) - Russia is not cancelling a second tranche of financial aid to Ukraine but the situation must normalise first, President Vladimir Putin's spokesman, Dmitry Peskov, was quoted as saying by RIA news agency on Thursday.

Putin promised to lend cash-strapped Ukraine $15 billion and reduce gas prices in a bailout package seen as a reward for Kiev's November decision to scrap plans for political and trade deals with the European Union and improve ties with Russia.

(Reporting by Katya Golubkova, editing by Elizabeth Piper)

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