Ukraine appeals for loans to ward off financial collapse

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Ukraine appeals for loans to ward off financial collapse

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When Viktor Yanukovych rejected a free trade trade deal with the EU, Russia granted almost 11 billion euros to Kyiv.

The first installment of 2.2 billion euros was paid before the uprising that toppled Yanukovich began.

But Russia suspended all payments last week. So where will the money come from?

Russia’s economic development minister Alexei Ulyukaev was asked about the status of nearly 1.5 billion euros in aid to Ukraine, the most recent installment promised.

“It’s on standby,” he said, “Because we have to have a partner. By partner, I mean new government, who is prime minister, who are the ministers and what are the programmes of the cabinet. So it’s quite understandable, I believe.”

EU Foreign Policy Chief Baroness Ashton was in Kyiv to pay her respects to the dead.

Interim president Oleksandyr Turchinov hinted that Ukraine’s future lies with the EU.

Kyiv says it needs just over 25 billion euros to stay afloat until the end of 2015. Brussels is working on a range of short term options, with China, the US, Japan and IMF likely involved.