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US ready to supplement IMF program to help Ukraine.

February 26, 2014

The United States is prepared to provide financial support for economic reforms in Ukraine in parallel with the International Monetary Fund (IMF), US Treasury Secretary Jack Lew has said this in a phone conversation with Arseniy Yatseniuk, according to the US Embassy in Kyiv. He encouraged Ukraine to begin discussions with the IMF as quickly thereafter as possible.

The EU is ready to grant Ukraine the first tranche of EUR 1bn already in March, Polska Agencja Prasowa said referring to European Commissioner for Financial Programming and Budget Janusz Lewandowski. However, Ukraine may receive the first tranche provided it coordinates the program of reforms with the IMF, he noted. He stressed the assistance would not be rendered without guarantees as it was during the last 20 years.

In her turn, the EU's High Representative for Foreign Affairs and Security Policy Catherine Ashton has announced that the EU plans to develop cooperation with the IMF with the aim of facilitating provision of economic assistance to Ukraine. She also noted the need to form a new government in Ukraine in the near future. In this regard, she said that it is important to implement economic reforms in various spheres of industry to give the economy the opportunity to enter new markets.

Mean-while, interim leader Oleksandr Turchynov reported what he calls as "dangerous signs of separatism", a reference to concerns that Russian-speaking regions in the east and south might rebel or even try to break away with Russian support. The Russian majority of the Crimea Autonomous Region of Ukraine has long entertained secessionist sentiments. The presence of the Russian Black Sea fleet at the Sevastopol port adds to the "delicate" situation. Ashton underscored the importance of Ukraine's territorial integrity in a signal to Kremlin not to intervene unilaterally.

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Source: IntelliNews - Weekly Reports

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