In Ukraine, Western Aid Has Limits

With offers of new financial and technical assistance for Ukraine, the European Union and the United States aim to strengthen the Ukrainian opposition's position in negotiations with President Viktor Yanukovich by showing that there are alternatives to Russian aid. Ukraine's long-standing financial difficulties are being aggravated by the current political crisis. For whoever is in charge in Kiev, securing financial assistance from abroad is a priority to stabilize the domestic economy.

There are several avenues by which the West can offer aid to Ukraine. However, demands for reform, lengthy procedures to approve aid, the European Union's own economic troubles and required coordination among states limit the European Union and United States' ability to match the financial and economic leverage that Russia has in Ukraine. Hence, to avoid a deeper financial and economic crisis, the new government in Kiev will still have to preserve strong financial and economic ties with Russia.