The United States signed an agreement yesterday to provide $2bn in loan guarantees to help war-torn Ukraine with “near-term social spending” in 2015 and said it was prepared to step up economic sanctions against Russia if necessary.
After signing the deal with Ukrainian Finance Minister Natalia Yaresko, US Treasury Secretary Jack Lew criticised what he called “Russian aggression,” a reference to Moscow’s support for separatists battling Kiev’s forces in eastern Ukraine which has triggered the Western sanctions on Moscow.
“We remain prepared to do more (on sanctions) if necessary. To that end, we will continue to work with our allies to increase the pressure on Russia,” Lew told reporters at the signing ceremony.
Lew added that the sanctions could be eased if Russia abided by the terms of the Minsk agreements signed last September which called for a ceasefire and the withdrawal of Russian fighters and military equipment from Ukraine.
Moscow denies Western and Ukrainian accusations that it has sent regular forces into eastern Ukraine.
Like other major donors to Ukraine, Lew said the US deal was contingent on the ex-Soviet republic continuing with fiscal and anti-corruption reforms and remaining on track to meet the conditions of its loan programme with the International Monetary Fund.
IMF officials are now in Kiev negotiating a bail-out package, currently worth $17bn , which Ukraine’s pro-Western government hopes will be expanded to help it handle crippling external debt repayments due this year.
