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                Ukraine Receives Additional Aid As Tensions Rise

   by Mil Arcega

   Tensions are rising in Ukraine even as assurances of international aid
   to stabilize the country's battered economy have started pouring in.
   Despite the promise of financial help, the ongoing conflict between
   Ukraine and Russia has only deepened the economic slump in both
   countries. Investors say the economic uncertainty extends beyond Russia
   and Ukraine's borders.

   Near Ukraine's eastern border, pro-Russian separatists barricade a
   bridge, while just 60 kilometers south, Russian supporters storm
   another government building.

   Overhead, choppers carrying Ukrainian special forces keep watch, wary
   that any action could tip the conflict into a dangerous new phase.

   The threat of civil war in Ukraine is enough to give investors
   heartburn.

   "Believing is not the same as knowing, but I am afraid the situation is
   going to get worse and that we will have to put up with very cautious
   markets for the next couple of weeks at least," said Fidel Helmer, a
   market strategist for Hauck and Aufhaeuser bank.

   Tensions in Ukraine have overshadowed generally positive earnings
   reports  - creating volatility in global markets from Asia to the
   United States.

   But amid the geo-political uncertainty, strategist Stephen Wood at
   Russell Investments said, financial markets have shown remarkable
   restraint.

   "Given all the information that's been priced in: the earnings cycle,
   the revenue cycle, what's happening in Ukraine, emerging markets,
   potential issues coming out of Washington, so given all that
   volatility... markets are kind of flat-ish year to date, which speaks
   to me of being a little more resilient than the headlines might
   insinuate," said Wood.

   With Ukraine's economy near collapse, the United States on Monday
   announced a one billion dollar loan guarantee for Ukraine, adding to an
   International Monetary Fund rescue package worth up to 27 billion
   dollars, said Treasury Secretary Jack Lew.

   "With this loan guarantee agreement, the Ukrainian government is
   empowered to take steps to gain access to low cost financing from
   international capital markets and help to ease Ukraine's economic
   transition," said Lew.

   Meanwhile, Europe is still in talks aimed at further isolating Russia.

   With the ruble already at its lowest level in nearly five years,
   economist Lilit Gevorgyan at IHS Global Insight said Moscow should take
   heed.
   "I have to say that perhaps in the short term, they can take more hits.
   But in the medium to long term, Russia is going to suffer from this
   confrontation," said Gevorgyan.

   But in this confrontation, analysts say any actions that significantly
   hurt Russia's economy are bound to hurt its trading partners, including
   Europe. Russia currently supplies 30 percent of Europe's natural gas,
   much of it piped in through Ukraine.
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   [1]http://www.voanews.com/content/ukraine-receives-additional-aid-as-te
   nsions-rise/1894341.html

References

   1. http://www.voanews.com/content/ukraine-receives-additional-aid-as-tensions-rise/1894341.html