Loans from IMF and EU would have been much more difficult to steal

Tonight there are credible reports that the EU would have provided Ukraine with a transparent financial support package more or less equivalent to that which Putin apparently proposed to Yanukovych a couple of days ago.

For many months it has been quite apparent that Yanukovych was not negotiating in good faith with the EU. The ridiculous nonsense of attempting to change the law in parliament to enable Yulia Tymoshenko to be released for medical treatment abroad was merely confirmation of this.

At the beginning of December Putin and Yanukovych had a secret meeting and reached agreement on future economic ties between their two countries, in particular concerning gas purchases and loans to prop up Ukraine's ailing economy.

As will all Russia-Ukraine gas deals struck in recent years, true details will never be known..they are arranged on the principle of 'Ponyatiyka' - gang-land verbal agreements.

The latest deal will set up the president's "Family" as an intermediary in the Russian/Ukrainian gas trade - enabling them, and Russian 'partners' to skim off hundreds of millions of dollars every year - hence the 'cheap' gas.

'Vetek' linked to Yanukovych's "Wizard of Gaz", Serhiy Kurchenko  will replace the infamous RUE, [much to the annoyance of Dmitro Firtash].

But most sadly of all: loans granted to Ukraine, from whatever source, will be totally wasted unless they are linked to solid reforms, and their use closely scrutinised..

Any loan from Russia will quickly wind up in the pockets of Ukrainian and Russian kleptocratic politicians and oligarchs. Ukraine's citizens will be saddled with debt repayments for years to come..