A pro-Ukranian activist shouts slogans during a rally in Luhansk, eastern Ukraine, April 28

The International Monetary Fund's board approved a massive $17bn aid package for Ukraine's new government on Wednesday. Battered by months of political and economic upheaval, Kiev is embroiled in a standoff with Moscow that has drawn in the European Union and the United States.

Ukraine faces a massive gas bill and needs to boost revenues to meet its currency debt obligations, which stand at more than $6bn to be paid by the end of 2014.

What's more, Russian energy giant Gazprom is demanding state company Naftogaz immediately pay $2.2bn in outstanding gas bills.

The IMF bailout will result in an immediate transfer of $3.2bn from the Fund to Kiev, which will be used for the government's short term payment obligations. The rest of the $17bn package will be distributed via a number of different channels, including the World Bank, the European Union and the United States.

Over the next 12 months Ukraine can expect to receive:

  • $3bn from the IMF immediately
  • $2.7bn from the European Union
  • $1bn from the World Bank
  • $1bn form the United States
  • $1bn Eurobond issue
  • $0.3bn from local dollar bond placement

But the money will also be flowing out of Kiev. Ukraine has a number of outstanding obligations to pay off its debts and will also owe the IMF a hefty repayment as well.

In the coming year, Kiev can expect to pay:

  • $2.9bn to the IMF over the course of the year
  • $1.6bn early repayment of local dollar bonds
  • $1.3bn in local dollar bonds repayments
  • $1bn on Eurobonds due in June, $0.9bn in coupons payments
  • $0.9bn owed to other international financial organisations and countries
  • $0.5bn local bond coupon payments ant T-bills