Monday, November 3, 2014

IMF’s financial assistance to Ukraine to continue regardless of martial law

IMF nudges Kyiv towards war 

photo © РИА Новости. Михаил Маркив

Jerome Vacher, the head of the IMF Office in Ukraine, said his organization will continue providing credit to the Kyiv authorities even if martial law is introduced in the country. He thus eased President Petro Poroshenko’s concerns about the IMF’s financial assistance to Ukraine if the country is put on a war footing.

Regarding the possible introduction of martial law, Vacher said that the IMF does not have any formal legal restrictions preventing cooperation under such conditions. We have cooperated with a number of countries where armed conflicts of various levels of intensity were unfolding, he added.

He said that IMF representatives are not in a position to influence how Kyiv will spend this money. Thus, the Ukrainian authorities have effectively had complete control over the issue of funding the civil war in Donbas. Russian economic expert Mikhail Khazin told our publication that, as a minimum, the IMF leadership is aware of the need to continue the war if it is not directly encouraging Ukraine to resume military operations in Novorossiya.

"Election results, far more than the IMF, are pushing Ukraine toward the war. I believe that the war will be resumed in two or three weeks," the expert said. Khazin also commented on the remarks by the head of the IMF Office in Ukraine regarding the spending of the IMF funds by the Kyiv authorities.

"I think that most of it will be stolen, of course, but some will be spent on military operations. Definitely not on paying for gas. That is, of course, if this money gets into Ukraine in the first place," the economist said.


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