Due to Ukraine's ongoing conflict with Russian-back separatists on its soil, Prime Minister Arseniy Yatsenyuk appealed to the European Union (EU) and said that their country is in dire need of financial assistance, Reuters reported.
On Monday, Yatsenyuk met with officials of the international union in Brussels, Belgium, to report Ukraine's current economic situation.
According to the Prime Minister, the country's continuing battle against rebel forces is pushing Ukraine's economy to the brink of bankruptcy. In addition, ever since Russia annexed Crimea, Ukraine had lost about 20 percent of revenues from trade operations.
In order to alleviate the country's financial stress, Yatsenyuk's government has imposed various economic reforms on the citizens. These mainly include raising taxes in the country. However, the Prime Miniester noted that these reforms are not enough to pull Ukraine's economy, and added that the country needs financial aid from other nations.
"We will do everything that was promised. But to overcome this period Ukraine needs to get some kind of cushion and this cushion is a new package of financial aid," Yatsenyuk told reporters after the meeting.
"It is difficult to fight with a nuclear state which is armed to the teeth," he added, referring to Russia.
Johannes Hahn, the EU's enlargement commissioner, assured Yatsenyuk that the international union will continue to provide financial support to Ukraine. EU's financial package to Ukraine, which consists of loans and grants, amounts to $15 billion.
However, as stated by Hahn, the union will help Ukraine once the country submits a draft detailing its planned economic reforms.
As Yatsenyuk was negotiating with the EU in Brussels, Russia threatened Ukraine about forming ties with the international organization, the Wall Street Journal reported.
Since Russian officials consider Ukraine as part of its area of influence, Russian has acted as one of the country's financial backers. However, due to Yatsenyuk's recent meeting with the EU, Russia has threatened to sever its economic ties with Ukraine.
According to Prime Minister Dmitry Medvedev, the Russian government said it would increase the taxes imposed on goods coming from Ukraine. In addition, Russia threatened Kiev that Ukrainians working and living illegally in the country will face harsher regulations starting next year.
