(By Deutsche Welle) Since Russia’s annexation of Crimea, the EU and US have promised billions in financial aid to shore up the embattled government in Kyiv. DW takes a look at how Brussels and Washington are using the funds.
As Ukraine’s cash-strapped interim government fights a costly battle against an armed pro-Russian uprising in the country’s east, Western nations have agreed to transfer billions in aid to help Kyiv survive its escalating economic and political confrontation with Moscow.
On Wednesday (07.05.2014), Ukraine’s central bank announced that it received $3.19 billion (2.29 billion euros) from the International Monetary Fund (IMF), the first tranche of a $17 billion international bailout. With the IMF deal concluded, Kyiv has successfully fulfilled the precondition for a European Union aid package totaling 11 billion euros.
Meanwhile, the US Congress has approved some $1 billion in loan guarantees for Ukraine. Additionally, Washington has signed off on tens of millions of dollars of broadly defined “security assistance” for countries in Central and Eastern Europe, including Ukraine. So far, the White House has said that it opposes delivering weapons to Kyiv.
“The United States has given some money but ultimately Ukraine is in the EU’s backyard; Ukrainians have protested under an EU flag; it’s up to the EU to support Ukraine in this process of transformation,” Amanda Paul, with the European Policy Centre, told DW.
“But of course it’s quite a leap of faith given Ukraine’s track record in carrying out reform[…],” Paul said.