News / Europe

Ukraine Receives Additional Aid As Tensions Rise

Ukraine Receives Additional Aid As Tensions Risei
X
Mil Arcega
April 16, 2014 1:27 AM
Tensions are rising in Ukraine even as assurances of international aid to stabilize the country’s battered economy have started pouring in. Despite the promise of financial help, the ongoing conflict between Ukraine and Russia has only deepened the economic slump in both countries. But investors say the economic uncertainty extends beyond Russia and Ukraine’s borders. VOA's Mil Arcega has more.
Ukraine Receives Additional Aid As Tensions Rise
Tensions are rising in Ukraine even as assurances of international aid to stabilize the country’s battered economy have started pouring in. Despite the promise of financial help, the ongoing conflict between Ukraine and Russia has only deepened the economic slump in both countries. Investors say the economic uncertainty extends beyond Russia and Ukraine’s borders.
 
Near Ukraine's eastern border, pro-Russian separatists barricade a bridge, while just 60 kilometers south, Russian supporters storm another government building.
 
Overhead, choppers carrying Ukrainian special forces keep watch, wary that any action could tip the conflict into a dangerous new phase.
 
The threat of civil war in Ukraine is enough to give investors heartburn.  
 
“Believing is not the same as knowing, but I am afraid the situation is going to get worse and that we will have to put up with very cautious markets for the next couple of weeks at least,” said Fidel Helmer, a market strategist for Hauck and Aufhaeuser bank.
 
Tensions in Ukraine have overshadowed generally positive earnings reports  - creating volatility in global markets from Asia to the United States.
 
But amid the geo-political uncertainty, strategist Stephen Wood at Russell Investments said, financial markets have shown remarkable restraint.
 
“Given all the information that’s been priced in: the earnings cycle, the revenue cycle, what’s happening in Ukraine, emerging markets, potential issues coming out of Washington, so given all that volatility… markets are kind of flat-ish year to date, which speaks to me of being a little more resilient than the headlines might insinuate," said Wood.
 
With Ukraine's economy near collapse, the United States on Monday announced a one billion dollar loan guarantee for Ukraine, adding to an International Monetary Fund rescue package worth up to 27 billion dollars, said Treasury Secretary Jack Lew. 
 
“With this loan guarantee agreement, the Ukrainian government is empowered to take steps to gain access to low cost financing from international capital markets and help to ease Ukraine’s economic transition,” said Lew.
 
Meanwhile, Europe is still in talks aimed at further isolating Russia.
 
With the ruble already at its lowest level in nearly five years, economist Lilit Gevorgyan at IHS Global Insight said Moscow should take heed.
“I have to say that perhaps in the short term, they can take more hits. But in the medium to long term, Russia is going to suffer from this confrontation,” said Gevorgyan.
 
But in this confrontation, analysts say any actions that significantly hurt Russia’s economy are bound to hurt its trading partners, including Europe. Russia currently supplies 30 percent of Europe's natural gas, much of it piped in through Ukraine.

You May Like

Obama: I Will Do 'Everything I Can' to Close Guantanamo

US president says prison continues 'to inspire jihadists and extremists around the world' More

Sierra Leone Educates on Safe Ebola Burials

Also, country is improving at rapid response to isolated outbreaks, but health workers need to be even faster, officials say More

Religion Aside, Christmas Gains Popularity in Communist Vietnam

Increasingly wealthy Vietnamese embrace holiday due to its non-religious glamor, commercial appeal More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
US Decision on Cuba Underscores Divisions Among Miami Cubansi
X
Sharon Behn
December 19, 2014 9:34 PM
For decades, older, more conservative Cubans have been gathering at Café Versailles on the corner of Calle Ocho to eat Cuban food and talk politics. After hearing of President Barack Obama’s decision, a number of them gathered in front of the café with posters to protest. VOA's Sharon Behn reports on the situation.
Video

Video US Decision on Cuba Underscores Divisions Among Miami Cubans

For decades, older, more conservative Cubans have been gathering at Café Versailles on the corner of Calle Ocho to eat Cuban food and talk politics. After hearing of President Barack Obama’s decision, a number of them gathered in front of the café with posters to protest. VOA's Sharon Behn reports on the situation.
Video

Video Three Cities Bid for Future Obama Presidential Library

President Barack Obama still has two years left in his term in office, but the effort to establish his post-presidential library is already underway. The bid for the Obama Presidential Library is down to four locations in three states -- New York, Hawaii, and Illinois. As VOA’s Kane Farabaugh reports, each of them played an important part in the president’s life before he reached the White House.
Video

Video Cuba Deal is Major Victory for Pope’s Diplomatic Initiatives

Pope Francis played a key role in brokering the US-Cuba deal that was made public earlier this week. It is the most stunning success so far in a series of peacemaking efforts by the pontiff. VOA religion reporter Jerome Socolovsky has more.
Video

Video Fears of More Political Gridlock in 2015

2014 proved to be a difficult year politically for President Barack Obama and a very good year for the U.S. Republican Party. Republican gains in the November midterm elections gave them control of the Senate and House of Representatives for the next two years -- setting the stage for more confrontation and gridlock in the final two years of the Obama presidency. VOA National Correspondent Jim Malone has a preview from Washington.
Video

Video Sudan School Becomes Target of Aerial Attacks

The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. VOA reporter Ayaz Gul visited the devastated school and attended the funeral of the principal who courageously tried to save her students from the deadly attack.
Video

Video Nigerians Fleeing Boko Haram Languish in Camp Near Capital

In its five-year effort to impose Islamic law in northeastern Nigeria, the Boko Haram extremist group has killed thousands of people and forced hundreds of thousands to flee. Some of those who ran for their lives now live in squalor on the edges of the capital, Abuja. Chris Stein reports for VOA.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.

All About America

AppleAndroid