Blue &Yellow: Politics and Economics in Ukraine

Since the economic crisis the hryvnia has fallen against the dollar, its currently trading at 6 hrv to $1. The main stock market continues to fall, closing down 6% at 248.9 points.  Gazprom and Haftogaz are close to reaching a long term deal; the two sides expect to sign the agreement soon. In order to combat the crisis the Rada is back in session, in order  to pass several measures needed before the International Monetary Fund will provide it credit.

The financial package calls for amendments to the 2008 budget, borrowing of $2 billion from unnamed international financial institutions, sovereign guarantees to firms seeking foreign credits and creation of a stabilisation fund.

The IMF has said nothing about its talks in Kiev. But officials say the Fund will make a credit contingent on balanced budgets, greater currency flexibility and higher interest rates.

Tymoshenko has asked the president to cancel what would be the third election in as many years and reinstate the shattered coalition between her bloc and Yushchenko's Our Ukraine party.