The Ukraine-Russia Deal - Analysis Eurasia Review #євромайдан #euromaidan

The Ukraine-Russia Deal - Analysis Eurasia Review:

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UKRAINE'S VIKTOR YANUKOVYCH

As the price to deter a westward move of Ukraine, Russia has made an offer that the Ukrainian president has found impossible to turn down, if he ever contemplated seriously tying his country to the EU. This is generally hailed as a master coup by President Putin and a great relief for President Yanukovych. In fact, this coup is likely to end in tears for both countries.

For many years now, Ukraine has been on a lifeline from the IMF. Severe policy mismanagement has left the country teetering on the brink of default. IMF programmes have been on and off, as commitments were not kept. Most recently, Ukraine has been negotiating a new loan but never closed the deal because it was unwilling to accept the associated policy conditions. The Russian loan means that Ukraine does not have to agree to an IMF programme, at least for the time being."

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