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Standoffs persist in Crimea as Kerry prepares to meet Russian counterpart - The Washington Post

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The European Union Commission president Manuel Barroso announced a multiyear $15 billion package of loans and grants for the new Ukrainian government on March 4, 2014. No immediate conditions were specified. Barroso said, this is "designed to assist a committed, inclusive and reforms oriented government in rebuilding a stable and prosperous future for Ukraine." This is meant to replace the help offered to the previous pro-Russian government by Russia and now cancelled with the ouster in street protests of that government. The U.S. has offered $1 billion in loan guarantees. For Ukraine this offers the prospect of making a new start under EU and possibly IMF guidance. The needs are estimated at $35 billion in international assistance loans over 2 years by the Ukrainian government, because of the dire state of the Ukrainian economy.

The EU's loan and grants package of $15 billion to Ukraine in March 2014

03/05/2014

For Ukraine the crisis has one positive aspect of assistance on better terms and prospect of recovery under guidance from the EU, and possibly the IMF. Before the crisis the EU faced with its own financial difficulties in the eurozone was reluctant to commit large scale assistance. A pro-western government in Kiev dependent on the EU, makes it easier for the EU to design the package so that the assistance works, and necessary conditions are provided by the Ukrainian government. Previous administrations in Kiev were mired in corruption, mismanagement of the economy, and Russian meddling or pressure, which the new government has the chance to avoid this time. Long term this could also offer the prospect of Ukraine- without the Russian speaking Crimea- joining the European Union.

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