Uncertainty on IMF Loan Sends Ukraine to Moscow

[Beet]

By ALAN CULLISON
The International Monetary Fund is likely to suspend loan payments to Ukraine, a move that would further push the government toward Moscow for aid and exacerbate a feud between top leaders in Kiev.

Ukraine is failing to meet the terms of its loan deal with the IMF, and likely won't get the next installment this month, according to a person close to talks between the fund and the government in Kiev.

Faced with a cash shortage, Kiev is passing the hat around to global powers. Talks were held in Moscow last week over a $5 billion loan to help plug Ukraine's budget deficit.

Ukraine Prime Minister Yulia Tymoshenko said her government also sent letters to the U.S., European Union, China and Japan, and that "Russia is ready to help with the credit agreement's signing."

http://online.wsj.com/article/SB123422995045566031.html?mod=googlenews_wsj

[dead0man]

That is not good.

[GMantis]

That is not good.

Yes, it's not good policy to subsidize unreliable countries especially during an economic crisis.
It was one of the reasons for the collapse of the Soviet Union.

[dead0man]

Russia wants its breadbasket (and safety zone) back and is willing to pay for it.

[12th Doctor]

And so dies the liberty of a nation.

[GMantis]

Russia wants its breadbasket (and safety zone) back and is willing to pay for it.

Russia produces enough food to export even now. And they don't need to possess the Ukraine as a safety zone, they only need the country neutral and certainly not part of NATO.

[dead0man]

Well that would be a nice minimum for them to shoot for.  I still fear Moscow would like Kiev "back in line".  I suppose it's not worth worrying about until actual bad things start happening.