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Ukraine updates: IMF to loan $15.6 billion to Ukraine
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The funds will be used to support post-war reconstruction and Ukraine’s path to joining the European Union. Meanwhile, Xi Jinping departed Moscow after a high-profile meeting with Vladimir Putin. DW has the latest.
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The International Monetary Fund (IMF) will provide Ukraine with a $15.6 billion (€14.5 billion) loan for economic recovery, the organization announced late on Tuesday.
The deal is the first time the IMF has agreed to loan money to a war-torn country in its 77-year history, Bloomberg reported. IMF chief Kristalina Georgieva previously met with Ukrainian President Volodymyr Zelenskyy in Kyiv last month.
“In addition to the horrific humanitarian toll, Russia’s invasion of Ukraine continues to have a devastating impact on the economy,” IMF Ukraine mission chief Gavin Gray said.
He said Ukraine’s economy had contracted by 30% in the past year and poverty has increased since Russia’s invasion.
The funds will be delivered over four years to support “long-term growth in the context of post-war reconstruction” as well as Ukraine’s potential journey to joining the European Union.
Ukrainian Prime Minister Denys Shmyhal welcomed the agreement.
“In conditions of a record budget deficit, this program will help us finance all critical expenditure and ensure macroeconomic stability and strengthen our interaction with other international partners,” he said in a message on Telegram.
The United States is the IMF’s largest shareholder.
US Treasury Secretary Janet Yellen has previously urged the IMF to provide new financing for Ukraine. She also welcomed the announcement.
“An ambitious and appropriately conditioned IMF program is critical to underpin Ukraine’s reform efforts, including to strengthen good governance and address risks of corruption, and provide much needed financial support,” Yellen said in a statement.
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Here are some of the other notable developments concerning the war on Wednesday, March 22:
Xi departs Moscow
Chinese President Xi Jinping left Moscow on Wednesday morning after after talks with Russian President Vladimir Putin.
Xi was seen off at Vnukovo airport by a guard of honor playing the Chinese and Russian national anthems, local media reported. High-ranking Russian officials were also in attendance.
During the visit, the two leaders hailed a “new era” of relations and discussed China’s 12-point proposal for a ceasefire in Ukraine.
However, Putin stopped short of endorsing the plan, saying it could only be the basis for peace once “the West and Kyiv are ready for it.” Critics say the plan is thin on solutions and could allow Russia to keep the territory it has occupied in eastern Ukraine.
Xi’s visit gave a strong political boost to Putin, who is increasingly isolated on the world stage. However, there was no mention of potential Chinese weapons supplies to Russia or any other support for the invasion. Beijing has repeatedly denied Western accusations that it plans to arm Moscow, or is already secretly doing so.
More DW coverage on the war in Ukraine
Russia repeatedly bombarded Ukraine’s electricity and gas infrastructure in recent months, but the nations was able to make it through the winter. DW looks at how Ukraine has maintained its energy supply despite the war.
Many countries issued sanctions against Russia after the invasion of Ukraine. DW spoke with European officials who are working to stop Russia ffom circumventing these sanctions via third countries.
zc/es (Reuters, AFP, AP, dpa)
