Ukraine Hopes for $35 Billion in Western Aid

KIEV, February 24 (RIA Novosti) – Ukraine said Monday that it has asked Western powers to provide at least $35 billion in urgent financial aid as it struggles to cope with a severe political and economic crisis.

Interim finance minister Yuriy Kolobov said in a statement that Kiev has urged the United States and countries in the European Union to decide on a financial rescue plan within two weeks.

“The planned volume of macroeconomic assistance for Ukraine could amount to some $35 billion through 2015,” Kolobov said.

He said the current financial situation in Ukraine was difficult but under control.

Olli Rehn, EU Economic Commissioner, said Monday that any proposed bailout deal for the cash-strapped former Soviet state would be measured in billions of euros, the Financial Times reported.

A Western financial aid package for Ukraine is in dire need following the ouster of the country’s president Saturday and a potential withdrawal of Russian economic support.

On Sunday, Russia warned that it would freeze a $2 billion purchase of Ukrainian eurobonds pending clarity in the political fallout of the weekend’s events.

That payment was to be the second tranche of a $15 billion loan package agreed upon in December in what was widely seen at the time as a resolution to the crisis in Ukraine and a foreign policy coup by Moscow.

On Friday, rating agency Standard & Poor’s warned that it expected Ukraine to default on its foreign-currency obligations if Russia delayed its promised loans.