Russian Prime Minister Vladimir Putin proposed on Friday that Russia's energy giant Gazprom and Ukraine's gas monopoly Naftogaz should create a joint holding.

Russia's VTB bank may grant the Ukrainian Finance Ministry a loan of up to $500 million, Russian Prime Minister Vladimir Putin said on Friday.

Russia's Atomergomash and Ukraine's Turboatom may create a nuclear joint venture, Russia's nuclear chief Sergei Kiriyenko said on Friday.

Acting Polish president, parliamentary speaker Bronislaw Komorowski will attend Victory Day celebrations in Moscow in an effort to strengthen relations with Russia.

Russian Prime Minister Vladimir Putin suggested on Friday Ukraine is beginning to see political stabilization, which should be followed by economic stabilization.

"No matter how turbulent your decision-making process is, the fact that you manage to carry out the decisions that you make is the most eloquent signal showing that a period of stabilization - at least, political stabilization - is coming in Ukraine," Putin said during a meeting with his Ukrainian counterpart Mykola Azarov.

He added that "this should imminently be followed by economic stabilization."

Putin and Azarov, in the Black Sea resort of Sochi, are discussing cooperation in more than 10 spheres, including oil, gas, nuclear energy and defense.

On Tuesday, the Russian and Ukrainian parliaments ratified a deal extending the lease on the Russian naval base in the Ukrainian port of Sevastopol for 25 years after the current lease expires in 2017. In return, Ukraine will receive a 30% discount on Russian natural gas.

The debate in the Ukrainian parliament saw chaotic scenes, with eggs thrown at the speaker by opposition lawmakers as deputies brawled.

Ukraine's new President Viktor Yanukovych was elected on a pledge to steer a more balanced policy toward Russia than his predecessor, and the foreign minister expected more bilateral issues to be resolved in the short-term.

RIA Novosti

German Chancellor Angela Merkel will attend a Victory Day Parade on Moscow's Red Square on May 9, a German government spokesman said on Friday.

Kyrgyz law enforcement agencies have charged the head of the presidential administration of Kyrgyzstan's ousted leader Kurmanbek Bakiyev with abuse of power, his lawyer said on Friday, the 24.kg news website reported.

Russian Prime Minister Vladimir Putin will meet with his Ukrainian counterpart Mykola Azarov in Sochi on Friday to discuss joint projects in nuclear energy, aviation industry and space, the Russian government's press service said.