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Bankruptcy threatens crisis-torn Ukraine

Thursday, January 22, 2015 - 01:56

Both sides in the Ukraine crisis have agreed on a demarcation line to begin the withdrawal of heavy weaponry. But as Kirsty Basset reports new violence followed the announcement, and there are fears Ukraine may soon run out of money.

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The ongoing conflict in Ukraine is driving a hole through the country's finances - pushing it close to bankrupcy. At least eight people were killed in this attack on a bus stop in the rebel held city of Donetsk. Ukraine has a $15 billion funding gap and is appealing to the IMF. But any financial help will be conditional on economic and fiscal reforms. IMF Managing Director Christine Lagarde. (SOUNDBITE)(English) IMF MANAGING DIRECTOR CHRISTINE LAGARDE SAYING: "This request I will submit to the board of the IMF which will be convened as quickly as possible in order to review the relevance of this EFF programme which certainly I would propose to support." The appeal for financial aid came as President Poroshenko accused Russia of direct involvement in the conflict, which has claimed more than 4,800 lives. (SOUNDBITE) (English) UKRAINIAN PRESIDENT, PETRO POROSHENKO, SAYING: "We have more than 9,000 troops of Russian federation on my territory, including more than 500 tanks and heavy artillery and armoured personnel carriers. If this is not an aggression, what is an aggression?" Hundreds have died despite a peace plan agreed in September last year. The Commander of the U.S Army in Europe, Ben Hodges, says it's not just Ukraine's future at stake. (SOUNDBITE) (English) COMMANDER OF UNITED STATES ARMY EUROPE, BEN HODGES, SAYING: "Ukraine is a sovereign country. There were agreements to which Russia is a signatory and yet Russia has violated their own agreements, violating the border of a sovereign country and, I think, the overall security of Europe." Diplomatic progress is being made - a security zone between Kiev's forces and pro-Russian fighters was established on Wednesday. As for a financial deal - Ukrainian officials are hopeful this too will soon be on the table. 4110-UKRAINE-CRISIS/BUS STOP SHELLING 3363-UKRAINE-CRISIS/TALKS 3296-UKRAINE-CRISIS/US MILITARY 3292-UKRAINE-CRISIS/DAVOS-IMF 3259-UKRAINE-CRISIS/DAVOS-POROSHENKO 3255-UKRAINE-CRISIS/DAVOS-POROSHENKO STATEMENT

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Bankruptcy threatens crisis-torn Ukraine

Thursday, January 22, 2015 - 01:56