Monday

25th Jun 2018

West shows $1bn of faith in Ukraine

  • Two years since the Maidan revolution, the Ukrainian economy has begun to turn a corner (Photo: Marco Fieber)

The International Monetary Fund (IMF) has shown faith in Ukraine’s reform efforts by disbursing new money. A new ceasefire deal has also given fresh hope of peace.

The IMF on Wednesday (14 September) in Washington voted to unblock $1 billion in macro-financial assistance, coming on top of $6.7 billion in previous payments under a $17.5 billion bailout programme.

Read and decide

Join EUobserver today

Support quality EU news

Get instant access to all articles — and 18 year's of archives. 30 days free trial.

... our join as a group

  • (Photo: consilium.europa.au)

Its decision, after a 13-month delay due largely to concerns on corruption, also frees the US to guarantee $1 billion of Ukrainian bonds to be sold on international markets and a €600 million EU loan.

The IMF chief, Christine Lagarde, said in a statement that there had been “welcome signs of recovery” in the economy and “bold steps” on reform, for instance, making people pay normal prices for energy.

She added that “much remains to be done, including combating corruption,” as well as recapitalising banks and filling a hole in pension funds.

The Ukrainian economy had shrivelled by 16 percent in the past two years, but grew 0.7 percent in the first half of this year.

Its finance minister, Oleksandr Danylyuk, said on Thursday the IMF cash would be used to repay debts and stabilise the hryvnia, calling it a sign of “confidence”.

The European Commission will, at an event in Kiev on Friday, unveil a separate €16 million scheme to help tackle corruption.

EU states are also preparing to grant Ukrainians visa-free travel, in a decision expected next month.

Cease-fire

The IMF news came the same day that the leaders of two Russia-occupied regions in east Ukraine, Alexander Zakharchenko and Igor Plotnitsky, announced a seven-day truce starting midnight.

One day earlier, international monitors, the OSCE, had recorded 275 explosions in the Donetsk region alone, with media reports of six deaths.

Ukrainian president Petro Poroshenko, who met the French and German foreign ministers in Kiev on Wednesday, agreed to match the truce.

Germany’s Frank-Walter Steinmeier said: “We came to Kiev with the pledge from Moscow that the separatists' weapons will fall silent at midnight”.

“We are glad that Ukraine will also respect the ceasefire … It would be a big step forward, plus open a window of opportunity, if weapons stayed quiet for seven days”.

The British and Polish foreign ministers, in separate initiatives, also visited Kiev on Wednesday.

With EU leaders to shortly discuss whether to maintain Russia economic sanctions, the UK’s Boris Johnson said: “The crucial thing now is that we maintain sanctions”.

“Brexit or not, it makes no difference to us … We continue to be a major player, as I've always said, in common foreign and security policy. It's inconceivable that the UK would not be involved in that kind of conversation about sanctions”, he said.

'Internal enemy'

For her part, Nadyia Savchenko, a Ukrainian MP and former soldier who had been, until recently, held captive by Russia, also urged the EU to uphold sanctions while visiting Brussels last week.

She said the EU should organise a humanitarian mission of doctors and lawyers to visit prisoners being held by both sides.

Amid a brewing controversy over the EU’s €16-million scheme, she told EUobserver: “We have a problem with corruption. We don’t hide it. We say it openly that it is our main internal enemy”.

The EU scheme has come under fire because Johannes Hahn, an EU commissioner, is to launch it at the so-called Yes business conference, which is sponsored by Viktor Pinchuk, an oligarch.

Daria Kaleniuk, a leading anti-corruption campaigner, told this website: “I wouldn't go [to Yes] even if I were invited because of Pinchuk”.

A Ukrainian official dealing with corruption issues, who asked to remain anonymous, said: “It’s not a good idea for an EU official [Hahn] to present an anti-corruption project during an event organised by an oligarch. Oligarchs are the leaders of Ukrainian corruption”.

EU trying to relaunch Ukraine peace process

Foreign ministers said the EU is ready to help with elections in Eastern Ukraine, while France and Germany are trying to bring back Russia to the negotiating table.

EU extends Russia blacklist by six months

Oligarchs, Kremlin aides, and security chiefs remain banned from EU until at least March next year, but Brexit could help Russia to get off the hook on economic sanctions.

Focus

Denmark leads Ukraine anti-corruption drive

The EU has unveiled an anti-corruption scheme for Ukraine, amid concerns that its officials and lawmakers are undermining a key reform in the fight against villainy.

Analysis

Trump befriends Conte, depresses EU

Most EU leaders found US president Donald Trump "depressing" at the G7, but one of them - Italy's Giuseppe Conte - made a new friend.

Opinion

Europe could lose out in North Korean bonanza

South Korean businesses including Hyundai and Samsung are already scoping investment opportunities. Will North Korea become a 'new Vietnam' opportunity - or more like Myanmar, where slow Brussels policy-making meant EU exporters lost out.

News in Brief

  1. Venice Commission: Hungary should repeal NGO law
  2. Trump threatens to slap 20 percent tariff on EU cars
  3. EU closes deficit procedure against France
  4. Romania's ruling party leader gets jail sentence
  5. EU states defer individual decisions on asylum reforms
  6. Commission opens case on Qatar gas flow
  7. EU adopts posted workers directive
  8. EU leaders to call for 'coordinated plan' on AI

Stakeholders' Highlights

  1. Mission of China to the EUJointly Building Belt and Road Initiative Leads to a Better Future for All
  2. Macedonian Human Rights MovementMHRMI Launches Lawsuits Against Individuals and Countries Involved in Changing Macedonia's Name
  3. IPHRCivil society asks PACE to appoint Rapporteur to probe issue of political prisoners in Azerbaijan
  4. ACCASocial Mobility – How Can We Increase Opportunities Through Training and Education?
  5. Nordic Council of MinistersEnergy Solutions for a Greener Tomorrow
  6. UNICEFWhat Kind of Europe Do Children Want? Unicef & Eurochild Launch Survey on the Europe Kids Want
  7. Nordic Council of MinistersNordic Countries Take a Stand for Climate-Smart Energy Solutions
  8. Mission of China to the EUChina: Work Together for a Better Globalisation
  9. Nordic Council of MinistersNordics Could Be First Carbon-Negative Region in World
  10. European Federation of Allergy and AirwaysLife Is Possible for Patients with Severe Asthma
  11. PKEE - Polish Energy AssociationCommon-Sense Approach Needed for EU Energy Reform
  12. Nordic Council of MinistersNordic Region to Lead in Developing and Rolling Out 5G Network

Latest News

  1. EU leaders still in search of migration plan
  2. Migration row at centre of EU summit This Week
  3. Merkel's woes cast shadow on EU's future
  4. Europe's tech race - trying to keep pace with US and China
  5. Merkel and Juncker's mini-summit risks fiasco
  6. Greece and creditors proclaim 'end of crisis'
  7. How a US firm pushed for EU €2.1trn pension fund
  8. Commission defends Africa migrant plan ahead of summit

Stakeholders' Highlights

  1. Mission of China to the EUChina-EU Economic and Trade Relations Enjoy a Bright Future
  2. ACCAEmpowering Businesses to Engage with Sustainable Finance and the SDGs
  3. Nordic Council of MinistersCooperation in Nordic Electricity Market Considered World Class Model
  4. FIFAGreen Stadiums at the 2018 Fifa World Cup
  5. Mission of China to the EUChina and EU Work Together to Promote Sustainable Development
  6. Counter BalanceEuropean Ombudsman Requests More Lending Transparency from European Investment Bank
  7. FIFARecycling at the FIFA World Cup in Russia
  8. Nordic Council of MinistersOECD Report: Gender Equality Boosts GDP Growth in Nordic Region
  9. Centre Maurits Coppieters“Peace and Reconciliation Is a Process That Takes Decades” Dr. Anthony Soares on #Brexit and Northern Ireland
  10. Mission of China to the EUMEPs Positive on China’s New Measures of Opening Up
  11. Macedonian Human Rights MovementOld White Men are Destroying Macedonia by Romanticizing Greece
  12. Counter BalanceControversial EIB-Backed Project Under Fire at European Parliament

Join EUobserver

Support quality EU news

Join us