IMF Warns Turmoil in Ukraine’s East Risks Raising Finance Needs

The International Monetary Fund, which has approved a $17 billion bailout for Ukraine, warned that the government may need more cash if it loses control of the nation’s eastern regions or fails to revive Russian trade ties.

“A long-lasting disruption of relations with Russia that depresses exports, investment, and growth or loss of economic control over the east that reduces budget revenue would require a significant recalibration of the program and additional financing, including from Ukraine’s bilateral partners,” the Washington-based fund’s staff said today in an e-mailed report.