Ukraine won a $27-billion U.S. international financial lifeline on Thursday, rushed through in the wake of Russia's annexation of Crimea, while Moscow's economy minister acknowledged that his country's growth would slow dramatically as funds flee abroad.
The International Monetary Fund announced a $14-18-billion U.S. standby credit for Kiev in return for tough economic reforms that will unlock further aid from the European Union, the United States and other lenders over two years, effectively pulling Kiev closer to Europe.
Raising the political temperature, former prime minister Yulia Tymoshenko, released from jail last month after her arch-rival Viktor Yanukovich fled from power in Kiev, announced she would run again for president in an election on May 25.
The declaration by the flamboyant Tymoshenko, 53, set up a contest with boxer-turned-politician Vitaly Klitschko, who has also announced his candidacy, and other figures who have emerged to contend for top posts after four months of political turmoil.
Tymoshenko, who appeared without the blonde peasant hair braid that has been her trademark for years, pledged to fight "lawlessness" and said she hoped to recover Crimea. But she remains behind her two rivals in opinion polls.
The IMF deal was a boost for the pro-Western government that replaced the Russian-backed Yanukovich last month, prompting Moscow to seize Crimea.
The IMF said it did not see a need to restructure Ukraine's debts for now.
The Ukrainian parliament later backed a law accepting the austerity measures demanded by the IMF, after initially voting against it.
