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US Join EU in Providing Support to Ukraine
Written by: PaxForex analytics dept - Friday, 27 June 2014 0 comments
U.S. ready to provide financial support to emerging from revolutionary changes Ukraine in addition to the credit program of the International Monetary Fund, the White House said.
Earlier this week, the EU has agreed to provide financial assistance to Ukraine in the amount of $24 billion.
Already two days after the dramatic escape of pro-Moscow President Viktor Yanukovych from Kiev because of the bloodshed, Washington tried to do an extra pressure towards Russia to allow things to develop without interference.
While striving to build a new future Kiev is in desperate need of money, the U.S. officials say that Washington is ready to help together with the IMF, when Ukraine will form a new government.
Representatives of international financial institutions told that one of the options to help sinking Ukrainian economy is to support measures that include loans from the IMF and bilateral loans and guarantees of governments.
It is unclear whether Russia will express a desire to join an international program, although diplomats say Moscow is a party to these negotiations.
The fall of Yanukovych administration has questioned further funding under the program promised to him by Moscow at $ 15 billion, of which Russia already has spent $ 3 billion on the Ukrainian sovereign government bonds with a rubbish rating. Moscow declared that it does not consider the temporary leadership of Ukraine as legitimate, calling the result of the change of power like "armed rebellion."
includes Russia, met in Sydney on the weekend and discussed the situation in Ukraine on the sidelines. IMF confirmed that it refused to provide its financial support to Yanukovych administration because he and his government didn’t follow the IMF’s requirements of economic reforms in Ukraine.
Ukrainian Finance Ministry said it needs $ 35 billion from the West in the next two years and will convene a conference of donor countries, urging them to provide funds. French Foreign Minister Laurent Fabius said that such project will be considered and a decision will be made in the coming days.
Ukrainian bonds rose on Monday due to investors' hopes that Western donors will help the country. U.S. State Department spokesman said that Ukraine is undergoing a period of significant transformation and needs support.