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IMF billion dollar bailout of Ukraine seems surreal

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Russia has mounted some 30-50,000 troops on the border of eastern Ukraine, making an invasion seem almost imminent and instead of hearing about major economic sanctions that might help to cripple Russia or at least make the invasion the worst decision they could make, the IMF announces that it will send Ukraine $14-18 billion dollars as a bailout.

While that news would normally be good for the Ukraine and those invested in her economy, it seems almost out of touch with the very real possibility of a Russian take-over about to happen. Granted the money can be used to purchase military weapons and other much needed items to help bolster their faltering economy, it just seems strange to loan a country that much money when it appears your enemy is about to take the country over. According to the Financial Times LTD 2014 the decision by the IMF to do this is "among the most geopolitically sensitive decisions it has faced."

In recent years the IMF bailed out Greece with less than spectacular results and many worry that this loan, made in a hasty manner, may not lead to a satisfactory conclusion, especially with a potential clash with Russia looming and the Ukraine's government in turmoil itself. The possibility remains that the IMF is only building a stronger foundation in Ukraine for Russia to inherit.



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