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Ukraine 'faces economic collapse', warns William Hague

 
Foreign Secretary William Hague gives a statement about the situation in Ukraine in the House of Commons, London. PRESS ASSOCIATION Photo. Picture date: Monday February 24, 2014. Photo credit should read: PA Wire
Staff|Agency
24 February 2014

Ukraine could face imminent economic collapse without support from the international community, Foreign Secretary William Hague has warned.

Mr Hague told MPs he would be raising the country's financial plight in the wake of the ousting of President Viktor Yanukovych with the International Monetary Fund when he visits Washington this week.

"Ukraine's financial situation is very serious and without outside assistance may not be sustainable. An economic crisis in Ukraine would be a grave threat to the country's stability and have damaging wider consequences," he said in a Commons statement.

The Foreign Secretary, who leaves for the United States tonight, said the IMF was the organisation best placed to provide the financial support and technical advice the country needed.

While support could be provided quickly once it was requested by a new government in Kiev, Mr Hague said it would require a commitment to reform.

"It requires a stable and legitimate government to be in place and a commitment to the reforms necessary to produce economic stability. International financial support cannot be provided without conditions and clarity that it will be put to proper use," he said.

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Mr Hague, who discussed the issue by telephone with Russian foreign minister Sergey Lavrov, said it was not clear whether a Russian bailout package offered by Moscow to entice Mr Yanukovych not to sign an association agreement with the European Union would now go ahead.

While the EU offer remained "on the table", he said it was vital that it did not become a "binary choice" for the Ukraine between co-operation with Russia or co-operation with Europe.

"This is not about a choice for Ukraine between Russia and the EU. It is about setting the country on a democratic path for the future. We want the people of Ukraine to be free to determine their own future," he said.

"It is important that all channels of communication between the EU and Russia stay open."