Standoff Between Russia and Ukraine Comes Down to Economics

Russia and Ukraine are both focusing on their economy to minimise the negative consequences of their standoff.

Gazprom’s Alexey Miller met Chinese Ambassador to Russia Li Hu to speak about Russian natural gas supply to China via the eastern route. 

‘It was pointed out that Gazprom made energetic efforts to build the required gas production, transmission and processing capacities in Eastern Russia. Particularly, the preparations for the construction of the Power of Siberia gas pipeline were highlighted,’ the company wrote on its website. 

Meanwhile, Kiev is moving closer to a $2 billion funds from the IMF and the World Bank.

“When there is warfare in the country, which is supported by the terrorists from the Russian Federation, every day we are losing our economic potential,” Ukrainian Prime Minister Arseniy Yatsenyuk said on Wednesday. 

The Government waits for IMF’s decision to allocate the next tranche worth $1.4 billion dollars by August 29.

“It will mean that overall, along with the World Bank’s funds, Ukraine will receive about 2 billion dollars,” Yatsenyuk said, stressing the importance of reforms and changes to stifle Ukrainian government.