By M. Bilal Kenasari
WASHINGTON
The United States will provide $2 billion in aid to Ukraine if the embattled country remains on-track with a reform program it agreed to with the International Monetary Fund, the Treasury Department said Tuesday.
“The U.S. support that I am announcing today will be part of a broader international package of support to help ensure the success of Ukraine’s reform program and ultimately restore financial stability, unleash economic potential, and allow Ukraine’s people to better achieve their economic aspirations,” said Treasury Secretary Jacob Lew.
The potential financial support will proceed in two parts with an initial $1 billion in loan guarantees, and "if Ukraine continues making concrete progress on its reform agenda and if conditions warrant," the U.S. will provide an additional $1 billion in loan guarantees in late 2015.
The U.S. says it hopes to the aid package will "protect the most vulnerable Ukrainian households from the impact of needed economic adjustment."
“We are encouraged by the strong reform progress made by the Ukrainian authorities to date, and applaud their strong cooperation with the IMF and their continued commitment to difficult but necessary reforms,” Lew said.
As part of a reform program suggested by the IMF and World Bank, the U.S. urged Ukraine to tackle corruption, overhaul its energy sector and financial system, and adhere to the rule of law.
The U.S. and its European allies have imposed sanctions on Russia, a country they accuse of supporting separatists in eastern Ukraine, and for Russia’s annexation of Crimea in March 2014.
Ukraine has appealed for lethal military aid to support its forces but Washington has so far resisted.
