Russia Threatens Ukraine With Forced Default Over $3 Billion Loan

Indeed its economic crisis has become so deep that at the end of last year the International Monetary Fund (IMF) identified a $15 billion shortfall in government funding that will need to be plugged "within weeks," according to the Financial Times . That figure comes on top of the $17 billion programme that has already been arranged by the IMF.

The initial deal was deemed sufficient to ensure that the immediate funding needs of Ukraine would be met and, once the country had stabilized government debt would be left on a sustainable footing. These forecasts now look wildly optimistic. The government in Kiev has effectively lost control of regions accounting for some 16% of Ukraine GDP to rebels, while the costs of fighting continue to mount.