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Ukraine economy: How bad is the mess and can it be fixed?

The International Monetary Fund (IMF) has approved a $17.1bn (£10.1bn) bailout for Ukraine to help the country’s struggling economy. The money will be released over two years, with the first instalment of $3.2bn available straight away. The IMF loan will also unlock further funds worth $15bn from other donors, including the World Bank, EU, Canada and Japan. Months of turmoil have taken their toll. Interim Prime Minister Arseniy Yatsenyuk warned that the economy would shrink by at least 3% this year – and by as much as 10% without international assistance. But the price of that help will come in the form of higher energy bills and wage freezes. So why is the Ukrainian economy in such bad…