Life in Donetsk increasingly difficult as Ukraine’s economy deteriorates

Global Business

In Ukraine, the long running political crisis has had a negative impact on the country’s economy.

But the southeast region of Donbass — where Kiev forces are battling pro-Russian insurgents — has been particularly hard hit, as CCTV America’s Kate Parkinson reports from Donetsk.

Follow Kate Parkinson on Twitter @katecctvnews

Life in eastern city of Donetsk becomes increasingly difficult

In Ukraine, the long running political crisis has had a negative impact on the country's economy overall. But the southeast region of Donbass, where Kiev forces are battling pro-Russian insurgents, has been particularly hard hit, as CCTV America's Kate Parkinson reports from Donetsk.

Life in the eastern city of Donetsk is becoming increasingly difficult. Many banks are not working, and the few that are have long queues as people try to get money.

With Ukraine’s currency (hryvnia) plummeting and a deteriorating growth outlook, there is concern that Ukraine’s next crisis will be a devastating economic one.

The International Monetary Fund has thrown Ukraine a financial lifeline stumping up $17.1 billion as part of a two-year bailout package. Kiev has received $3.2 billion so far and hopes to get an additional $1.4 billion in late August. But the fund has warned that with prolonged fighting in the east, a bigger bailout may be needed.