IMF Warns Ukraine of Necessary Ties with Russia

Ukraine needs to get back in touch with Russia to avoid additional support from the International Monetary Fund, also after the international body approved its plan for Kiev.

‘A long-lasting disruption of relations with Russia that depresses exports, investment, and growth or loss of economic control over the east that reduces budget revenue would require a significant recalibration of the program and additional financing, including from Ukraine’s bilateral partners,’ wrote the fund on Thursday.

 On Wednesday, the Executive Board of the IMF approved a two-year Stan d-By Arrangement for the country amounting to US$17.01 billion. 

“Risks to the program are high. In particular, further escalation of tensions with Russia and unrest in the east of the country pose a substantial risk to the economic outlook,” Christine Lagarde, Managing Director and Chair, said in a note released on Wednesday.