Russia Provides Ukraine With $13.75 Million as Part of First IMF Loan

As a contributor to the International Monetary Fund (IMF), Russia will take part in providing Ukraine with its first IMF loan tranche, contributing $13.75 million to the tranche on March 13, Russia's Finance Minister Anton Siluanov announced. The first IMF tranche grants it a total of 3.546 billion in special drawing rights (around $5 billion) which will be made available to the account of the National Bank of Ukraine.

"The program's financing is implemented through both the IMF's quota resources and the involvement of financing from shareholder countries through their participation in the New Arrangements to Borrow (NAB). As a result, the Russian Federation, in accordance with its requirements as a participant in NAB will finance the first tranche of the IMF program to the tune of 10 million SDR ($13.75 million)."

The Bank of Russia will make the payment later in the day, the minister added.

On Friday, Ukraine's Ministry of Finance announced that Ukraine has begun receiving funds from the first IMF tranche.

In total, Ukraine will receive $10 billion in 2015, of a total of $40 billion. $17.5 billion will be provided will be provided by the IMF and $15 billion will come through loan restructuring. Another 7.5 billion comes from other creditors, including $2 billion from the European Union, $2 billion from the United States and the rest from other G7 members.

The conflict in eastern Ukraine had a direct impact on the country's economy as its currency has plummeted, its foreign reserves have dried up and growth has slowed.