Tags: Ukraine | Russia | Crimea | troops

Ukraine Sets Sights on $13.5 Billion of Aid as EU Warns Russia

Friday, 04 Apr 2014 07:36 AM

Ukraine said it stands to receive $13.5 billion of international funds this year as the European Union threatened Russia with more sanctions if it doesn’t pull troops back from its neighbor’s border.

The financing will come from the International Monetary Fund, which is due to sign off on an aid package this month, as well as the World Bank and the European Bank for Reconstruction and Development, Prime Minister Arseniy Yatsenyuk said today. After only a “token” withdrawal of Russian forces from Ukraine’s eastern frontier, new penalties “have to be ready,” U.K. Foreign Secretary William Hague said in Athens.

“It’s difficult to persuade foreign investors that everything’s OK in your country when thousands of Russian troops and hundreds of tanks are on Ukraine’s borders,” Yatsenyuk told business leaders gathered in the capital.

Ukraine is juggling a rescue for its cash-strapped economy with a military threat from Russia, whose takeover of the Black Sea Crimean peninsula has reignited Cold War tensions with the U.S. and Europe. As the standoff rattles financial markets, Ukraine yesterday accused the Kremlin of involvement in the deaths of anti-government protesters in Kiev in February, while Russia detained 25 Ukrainians for alleged terrorism plots.

Hryvnia Weaker

The hryvnia, this year’s worst performer against the dollar among more than 150 currencies tracked by Bloomberg with a 29 percent drop, lost 1.3 percent to 11.6. The ruble, which has weakened 7.2 percent against the dollar in 2014, rose for the first day in three, trading 0.2 percent stronger at 35.43 as of 2:42 p.m. in Moscow.

Ukraine sealed a preliminary bailout agreement with the Washington-based IMF last month, envisaging as much as $18 billion in loans over two years. The rescue would unlock additional international financing, bringing the total package to $27 billion. The World Bank will hold talks tonight with Ukraine’s government over a $1 billion loan tranche, the Unian news service reported.

With foreign reserves already dwindling and a 3 percent economic contraction predicted by the government, Ukraine faces threats from weak banks, lower foreign investment and a halt in trade with Russia, according to Yatsenyuk, whose administration isn’t recognized by the Kremlin.

© Copyright 2017 Bloomberg News. All rights reserved.

 
1Like our page
2Share
Markets
Ukraine said it stands to receive $13.5 billion of international funds this year as the European Union threatened Russia with more sanctions if it doesn't pull troops back from its neighbor's border.
Ukraine,Russia,Crimea,troops
356
2014-36-04
Friday, 04 Apr 2014 07:36 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved