US Edition 
Ukraine to get $15bn as Russia hit by downgrades
IMF to unveil aid package for Kiev as US warns sanctions will also have "impact on the global economy”
The International Monetary Fund is close to pushing through a near $15bn (£9bn) package of aid to support Ukraine as a leading ratings agency warns over the impact of sanctions on Russian energy companies.
The funding is expected to be unveiled by the fund on Thursday and falls short of the $20bn programme that Ukraine’s interim government had pushed for. However, the package will ease fears that Russia will be able to place an economic stranglehold over Kiev after Moscow annexed Crimea.
The support could also unlock up to $1bn of loan guarantees from the US government for Ukraine. President Barack Obama reiterated his support yesterday saying the US would “never waiver” in backing Nato allies.
The US and the European Union are working on tougher sanctions in order to hit back at Russian President Vladimir Putin over the situation in Ukraine.
“Energy is obviously a central focus of our efforts”, said Obama yesterday in Brussels adding that it “will have some impact on the global economy”.
Standard & Poor’s said yesterday that it was placing the ratings on Gazprom, Rosneft, Transneft and Lukoil on negative outlook from stable. The agency also said that it has suspended the rating on Bank Rossiya.
The downgrade of the outlook for the four major energy companies is a warning for Russia’s economy, which depends on the export of oil and gas to generate hard currency earnings from overseas. Moscow is locked in an increasingly bitter dispute with the US and Europe following its annexation of Crimea and threats to Ukraine.
S&P in a note yesterday warned over the Russian government’s capability to support large industrial companies in the face of tougher sanctions. “If we lowered the ratings on Russia, we would lower the ratings on Gazprom, Rosneft, Transneft, and Lukoil,” S&P said.