The International Monetary Fund on Friday approved the latest
payment to Ukraine in its $17 billion bailout program, providing a
critical boost to Kiev as it faces military, economic and political
threats.
The IMF said its board approved a $1.39 billion payment, which
will bring total disbursements under the program to $4.51
billion.
Months after Russia moved to annex the Crimea region this
spring, Ukraine is fighting a growing Russia-backed military force
along its eastern borders. Moscow has denied military involvement,
blaming the fighting against Kiev on volunteers, separatist
fighters and some disoriented Russian troops.
On the economic front, Russia's energy minister said Friday that
negotiations on Ukraine's gas debt can't start until Kiev pays
$1.45 billion of debt to Russian gas giant OAO Gazprom.
For Ukraine's government, the onset of cold winter months could
exacerbate an already fragile outlook, with the economy battered by
months of turmoil and civil war in the east of the country.
Prime Minister Arseniy Yatsenyuk this week called for swift
steps to stabilize the hryvnia, the local currency, which has
fallen steeply in the last year. The IMF backs a flexible exchange
rate rather than the peg to the dollar that Kiev previously
maintained.
In July, Ukraine's ruling coalition broke up, setting the stage
for parliamentary elections that could strengthen the hand of
President Petro Poroshenko as he backs a fight against the
insurgency in the east.
Write to William Mauldin at william.mauldin@wsj.com
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