By J C Suresh | IDN-InDepth NewsReport
TORONTO (IDN) – The way international financial institutions jumped in on the heels of the political turmoil in Ukraine and are rivalling to deregulate and throw open the country’s huge agricultural sector to foreign investors is described by a new report from the California-based Oakland Institute, Walking on the West Side: the World Bank and the IMF in the Ukraine Conflict.
The crisis in this Eastern European country, sprawling an area of 603,628 square kilometres (233,062 square miles), thus making it the largest country entirely within Europe, was precipitated by former Ukrainian President Viktor Yanukovych’s rejection of an Association agreement with the European Union in favour of a Russian deal. It was a major factor leading to his ouster in February 2014.
Soon after the change to a pro-EU government, the country’s swing to the West was buttressed with a USD 17 billion loan from the International Monetary Fund (IMF) and an additional USD 3.5 billion aid package from the World Bank, both of which require significant economic reforms and austerity measures that are expected to have disastrous impact on the country’s economy.