03:34 GMT21 October 2020
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    Ukrainians are unlikely to take advantage of the foreign aid package, as much of the money will be spent on weapons purchases and divided among the oligarchs.

    The German magazine “Wirtschafts Woche” considers the $40 billion IMF aid package for Ukraine a bad idea, as the given money will not alleviate the suffering of the Ukrainian residents and is more likely to further enrich oligarchs in power.

    On March 11, the IMF approved a $17.5 billion loan for Ukraine. The total aid package for Kiev is expected to reach $40 billion.

    Fifteen billion dollars is supposed to be used to restructure Ukraine’s external debt. The rest should go to restore the destroyed infrastructure in the eastern regions of the country.

    However, this is only a theory, the German magazine writes. The suspension of hostilities in the eastern parts of Ukraine has not stopped the human suffering, with the Kiev government continuing to persecute people, dissatisfied with the country’s regime.

    The economic situation is very fragile; pensioners, whose tiny retirement pays were significantly reduced and have to pay additional taxes, while inflation in the country has increased by 30%.

    However, despite these hard times, Ukrainian oligarchs continue to live a prosperous life. The profit from the chocolate factories of Ukrainian President Petro Poroshenko, for instance, increased eightfold.

    According to “Wirtschafts Woche,” the IMF’s decision to provide financial assistance to Ukraine is ill-considered, as most money is likely to be spent on arms purchases.

    After the disastrous and incompetent war in the winter months, the Kiev government is likely to seek revenge. Thus, the IMF will undermine the largely sustainable ceasefire, achieved by the European states, the magazine wrote.

    Related:

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    Tags:
    military conflict, aid package, International Monetary Fund, Ukraine
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