Ukraine Crisis: US Offers $1bn Energy Aid After Russia Touts Gazprom Gas Bill Loan

Ukraine will be offered $1bn of energy aid under an economic package from the US, according to Associated Press.

It is the latest move in a grapple for influence over Ukraine, a country in the midst of revolution, between the west and Russia.

Russia has said it will consider loaning Ukraine between $2bn (£1.2bn, €1.45bn) and $3bn to help it pay for a gas bill from Gazprom, the Russian state-owned energy giant.

The new Ukrainian government said it would not be able to pay for its February supply of gas from Gazprom, who responded by cancelling the country's gas price discount.

Ukraine's parliament had ratified a €610m support package from the European Union (EU) hours before the US and Russian offers.

During the revolution, Ukraine's Kremlin-allied president, Viktor Yanukovich, was ousted from office for failing to ratify the EU financial package and instead agreeing to close financial ties with Russia.

Many Ukrainians want closer economic and political ties with the west.

Russia has deployed troops on the ground in the Crimea region of Ukraine where it owns much of the industry. Crimea's population is also around 60% Russian.

Both the US and EU have denounced the advance by Russia's military as an act of aggression that breaches Ukraine's national sovereignty. They are threatening economic sanctions against Russia.

Vladimir Putin, Russia's president, insists the troops are there to protect his country's interests and citizens. He added that he only intends to use force as a last resort.