Troubled by both war and the threat of financial collapse, Ukraine got a lifeline from the International Monetary Fund (IMF). The agency put in place a four-year extended fund facility worth about $17.5 billion, and put it in within hours of the announcement of a cease-fire in the military struggle between Ukraine and Russia. The cease-fire will start February 15. The sum should stabilize Ukraine’s perilous need for financial aid.

The IMF announced:

The policies under the new arrangement, developed by the Ukrainian authorities jointly with Fund staff, are designed to address the many challenges confronting the Ukrainian economy. Economic activity contracted by around 7-7½ percent in GDP in 2014, weighed down by the conflict in Eastern Ukraine, which has taken a significant toll on the industrial base and exports, undermined confidence and ignited pressures on the financial system. The economic reform program focuses on immediate macroeconomic stabilization as well as broad and deep structural reforms to provide the basis for strong and sustainable economic growth over the medium term.

The facility almost certainly was made available because Ukraine is considered the defending nation and Russia the aggressor. Ironically, sanctions against Russia and a drop in oil prices have put its economy in a tailspin that could approach Ukraine’s. Russia, however, will not get aid from the IMF. Its generosity only extends so far.

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