Mediaboss Marketing

The European Union is considering a further 1.8 billion euros ($2.1 billion) in aid to Ukraine to help the former Soviet republic overhaul its economy, which has been ravaged by a separatist conflict in its easternmost regions.

The European Commission, the EU executive, said the fresh loans, on top of $17 billion already pledged in the International Monetary Fund-led rescue of the troubled country, were contingent on the Ukrainian government pushing through economic reform measures and fighting corruption.

The EU has provided unprecedented financial support and todays proposal proves that we are ready to continue providing that support, Commission President Jean-Claude Juncker said today in a statement. Solidarity goes hand in hand with commitment to reform, which is urgently needed in Ukraine.

The Ukrainian government is grappling with the deepest recession since 2009, with an economic contraction that reached 7.5 percent last year, according to the nations central bank. The authorities in Kiev are seeking a further $15 billion to patch up an economy damaged by the conflict that has killed at least 4,700 people and injured more than 10,000.

Disbursement of the aid, which must still be approved by the European Parliament and the EUs 28 governments, will depend on Ukraines adherence to the conditions of the IMF program, which include fiscal consolidation, changes in the energy and banking industries, and other measures, the commission said.

This would be the EUs third package of loans to Ukraine, following two totaling 1.6 billion euros approved last year. A final portion of 250 million euros from the earlier aid is due to be given within the first months of this year, according to the commission.

To contact the reporter on this story: Ian Wishart in Riga, Latvia at iwishart@bloomberg.net

To contact the editors responsible for this story: Alan Crawford at acrawford6@bloomberg.net Jones Hayden, Peter Chapman

Press spacebar to pause and continue. Press esc to stop.

Go here to read the rest:
EU Proposes 1.8 Billion Euros of New Support for Ukraine