Will Russia bail out Greece?

Greece's new Prime Minister Alexis Tsipras could be headed to Moscow on May 9 to discuss a potential bailout package for his debt-ridden nation, officials in both Athens and the Kremlin signalled after a phone call between the two leaders on Thursday.

"The Russian president and the prime minister emphasized the need for substantial improvement of the cooperation between Greece and Russia - countries with deep and historic ties - especially in the sectors of economy, energy, tourism, culture and transport," read a statement from Tsipras' office.

The move has fanned speculation that the Kremlin could seek to step in to pull Greece from the brink of bankruptcy as the new left-wing government in Athens continues to lock horns with its international lenders - the European Central Bank (ECB), the European Commission and the International Monetary Fund, known as the Troika. The Syriza-led government swept to power on a pledge to renegotiate the country's crushing debt burden.

Unlikely alliance?

The prospect of closer ties between Athens and Moscow is likely to raise eyebrows both in Brussels and across the EU after the ECB said it had decided to adopt a hard line on Greece's debt earlier in the day. This also comes against the backdrop of fresh threats by the EU to impose further sanctions on Russia over the Ukraine crisis - a move prompting Greece's new Foreign Minister Nikos Kotzias to say that the EU should avoid "spasmodic" moves against the Kremlin.

It is also unclear how exactly Moscow would finance such a Greek bailout, considering that Russia's economy is in a shambles following months of Western sanctions. The country's economy is expected to shrink three percent this year alone, with the rouble in freefall and explosive inflation.

But Greece is badly in need of a fresh money injection after the ECB abruptly pulled back its soft treatment, saying that as of February 11 it would no longer allow Greek banks to use government debt as collateral for loans. The news sent shockwaves through international markets, with the Greek stock market plunging by nearly ten percent in early trading.

pad/uhe (AP, AFP, dpa, Reuters)