West should give Ukraine another $15 bln – FT

The IMF and Western donors should provide another $15 billion to Ukraine in order to settle the situation in Ukraine, since sanctions against Russia do not seem a sufficiently effective instrument of deterrence with respect to Russian President Vladimir Putin.
This is stated in an article published in Britain’s Financial Times newspaper, a Ukrinform correspondent reported.
“As the Ukraine crisis intensifies, the west faces limited choices. Applying more sanctions on Russia is unlikely to stop Mr. Putin destabilizing Ukraine. Supplying arms to the Kyiv government will dangerously inflame east-west tensions. But granting $15 billion to Ukraine might allow the country to head off the Kremlin’s political and economic challenge. It is worth taking the risk,” the author of the article says.
He writes that the conflict between Ukrainian and Russian forces has brought production crashing at eastern coalmines and steel mills in eastern Ukraine. Ukraine’s economy is under pressure on many fronts. Moscow threatens to impose sanctions on Ukraine and to cut off gas supplies.
At the end of October, Ukraine’s international reserves fell to $12.6 billion, below the critical threshold for solvency. “This toxic mix has swelled fears of a sovereign debt default, triggering calls for a new international bailout,” reads the article.
According to the author, the financial crisis in Ukraine “urgently demands a response from western governments.” Putin’s military tactics seem primarily designed to fuel an economic meltdown which destabilizes Kyiv, according to the article.
“Western governments and the International Monetary Fund now need to act fast to bring Ukraine back from the brink of financial collapse,” the author says.

Avatar photo

News and Summaries

Submit a Comment

Your email address will not be published.

Share This

Share this post with your friends!