IMF boss Christine Lagarde confident Ukraine can meet conditions for planned bailout

IMF chief Christine Lagarde has voiced confidence that Ukraine will meet conditions of a bailout as its economy reels after Russia’s takeover of Crimea.

A customer looks at the dual currency price tags in Russian rubles and Ukrainian hryvnias

IMF chief Christine Lagarde has voiced confidence that Ukraine will meet conditions of a bailout and stabilise its economy, which is reeling after Russia’s takeover of Crimea.

Ms Lagarde said that she expects to present a bailout plan, which would total $US14 ($15) - $US18 billion over two years, to the International Monetary Fund’s board of governors in late April or early May.

She expects Ukraine to “deliver on its commitments” despite concerns about the health of the Kiev government, which has been in power since February following an uprising.

“We generally do not enter into negotiations with the idea that the program is going to fail,” Ms Lagarde told reporters at the IMF/World Bank annual spring meetings.

Bailout ... IMF boss Christine Lagarde is preparing a $15 billion bailout for Ukraine, after Russia seized Crimea. Picture: AP

The package’s goal will be for Ukraine to “restore its financial situation so that it can finance itself, refinance itself and operate without support from the IMF.”

Western nations have voiced support for economic backing of Ukraine after Russia seized its Crimea region following the pro-Western uprising.

But an IMF bailout could test the popularity of the new government, which will have to agree to tough austerity measures.

Russian President Vladimir Putin has kept ramping up pressure on Ukraine, warning today that Moscow could cut gas supplies if the country does not settle its $US2.2 billion energy bill.

World Bank President Jim Yong Kim meanwhile warned that the crisis will have far-reaching effects on the economies of both Ukraine and Russia.