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

Multimedia Social Media Documenting, Not Driving, Hong Kong Protests

Unlike in Arab Spring uprisings, pro-democracy protesters in Hong Kong aren't relying on Twitter and Facebook to organize, but social media still plays a role More

Analysis: Occupy Central Not Exactly Hong Kong’s Tiananmen

VOA's former Hong Kong, Beijing correspondent compares and contrasts 1989 Tiananmen Square protest with what is now happening in Hong Kong More

Bambari Hospital a Lone Place of Help in Violence-Plagued CAR

Only establishment still functioning in CAR's second city is main hospital More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
The Legacy of Jimmy Carter: The Preacher from Plainsi
X
October 01, 2014 10:45 AM
It is common in the United States to see tourists flock to sites associated with America's presidents. Some are privately owned and others are run by the National Park Service or the National Archives -- but most have helped draw business and people into the towns and cities where they are located. As VOA’s Kane Farabaugh reports, there is one particular presidential hometown that is unique in what it has to offer those who make the trip.
Video

Video The Legacy of Jimmy Carter: The Preacher from Plains

It is common in the United States to see tourists flock to sites associated with America's presidents. Some are privately owned and others are run by the National Park Service or the National Archives -- but most have helped draw business and people into the towns and cities where they are located. As VOA’s Kane Farabaugh reports, there is one particular presidential hometown that is unique in what it has to offer those who make the trip.
Video

Video Hong Kong Protests Draw New Supporters on National Holiday

On the 65th anniversary of the founding of Communist China, Hong Kong protesters are hoping to stage the largest pro-democracy demonstration since the 1989 Tiananmen protests. VOA's Brian Padden visited one of the protest sites mid-day, when the atmosphere was calm and where the supporters were enthusiastic about joining what they are calling the umbrella revolution.
Video

Video India's PM Continues First US Visit

India's prime minister is on his first visit to Washington, to strengthen political and economic ties between the world's oldest and the world biggest democracies. He came to the U.S. capital from New York, the first stop on his five-day visit to the country that denied him an entry visa in the past. From Washington, Zlatica Hoke reports Modi seemed most focused on attracting foreign investment and trade to increase job opportunities for his people.
Video

Video Malaysia Struggles to Stop People Joining Jihad

Malaysian authorities say militant groups like the so-called "Islamic State" have used social media to entice at least three dozen Malaysian Muslims to fight in what they call "jihad" in Syria and Iraq. As Mahi Ramkrishnan reports from Kuala Lumpur, counterterrorism police are deeply worried about what could happen when these militants return home.
Video

Video Could US Have Done More to Stop Rise of Islamic State?

President Obama says airstrikes against Islamic State militants in Syria will likely continue for some time because, in his words, "there is a cancer that has grown for too long." So what if President Obama had acted sooner in Syria to arm more-moderate opponents of both the Islamic State and the Syrian government? VOA State Department Correspondent Scott Stearns reports from the United Nations.
Video

Video Treasure Hunters Seek 'Hidden Treasure' in Central Kenya

Could a cave in a small village in central Kenya be the site of buried treasure? A rumor of riches, left behind by colonialists, has some residents dreaming of wealth, while others see it as a dangerous hoax. VOA's Gabe Joselow has the story.
Video

Video Ebola Patients Find No Treatment at Sierra Leone Holding Center

At a holding facility in Makeni, central Sierra Leone, dozens of sick people sit on the floor in an empty university building. They wait in filthy conditions. It's a 16-hour drive by ambulance to Kailahun Ebola treatment center. Adam Bailes was there and reports on what he says are some of the worst situations he has seen since the beginning of this Ebola outbreak. And he says it appears case numbers may already be far worse than authorities acknowledge.
Video

Video Identifying Bodies Found in Texas Border Region

Thousands of immigrants have died after crossing the border from Mexico into remote areas of the southwestern United States in recent years. Local officials in south Texas alone have found hundreds of unidentified bodies and buried them in mass graves in local cemeteries. Now an anthropologist and her students at Baylor University have been exhuming bodies and looking for clues to identify them. VOA’s Greg Flakus has more from Waco, Texas.
Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.

AppleAndroid