On 18 December, the government in Ukraine decided to nationalise the country’s largest bank, PrivatBank. It has been owned by the oligarchs Ihor Kolomoyskyi and Henadiy Boholyubov.
In the evening of 16 February, the Ukrainian parliament failed to pass a vote of no confidence in the government of PM Arseniy Yatseniuk.
The IMF’s decision from 8 December is of great importance for Ukraine, which is in a very difficult financial situation.
The agreement comes as a success for Ukraine since it removes the threat of the country defaulting in the forthcoming months.
Kyiv wants to put pressure on foreign lenders to agree to the restructuring and partial waiver of its debt.
The main reason for the decline in exports from Ukraine is the collapse of industrial production in the war-torn Donbas region.
The last few weeks of the new session of parliament, including in particular the work on the budget, show that the dividing lines within the ruling coalition.
Next to gas, coal is of key importance in the Ukrainian energy balance and in electricity production.
The IMF’s decision to grant Ukraine a loan represents the most tangible form of support which the West has extended to the present government in Kyiv.
The development of the Ukrainian crisis, including the possible destabilisation of other regions, will depend on whether Kyiv accepts Moscow’s demands.