WASHINGTON (Reuters) - International Monetary Fund chief Christine Lagarde said on Wednesday that an infusion of financial support for Ukraine and its impact largely hinges on how the security crisis over Russia's actions in Ukraine is resolved.
In an interview on MSNBC, the International Monetary Fund's managing director said the fighting in eastern Ukraine, where pro-Russia separatists have been battling the government, is a huge distraction in efforts to reform the country's economy.
The success of financial support for Kiev depends on how stable the situation is in eastern Ukraine, she said.
Last month, Lagarde announced Ukraine would receive about $40 billion (26.2 billion pounds) in funding in the next four years, with nearly half that amount coming from the IMF.
"What we are trying to help Ukraine with is a set of reforms, massive financial support - but all of that is really going to depend on how it stabilizes on the east of Ukraine and how the war comes down and the conflict stops," she said.
Ukraine's current leaders "are really determined to reform the economy," Lagarde said, but the conflict in the eastern part of the country "has been a huge distraction."
"It's like trying to walk while carrying this big burden with you at the same time," she said.
Her comments come as European leaders separately consider additional options, including more sanctions on Russia, to address Ukraine's security crisis and Russia's role in supporting separatists there.
A ceasefire agreement between Ukraine and the rebels took effect on Feb. 15 but both sides accuse the other of violations.
Additionally, Lagarde said any economic collapse of Ukraine would not be in Russia's interest "because it is a supplier, because it is a creditor and because it wants to get paid and reimbursed at the end of the day."
Asked about Russia's financial role in Ukraine, Lagarde told MSNBC the payment situation over gas supplies from Russia to Ukraine is "pretty much under control."
On Tuesday, Russia said it would consider offering Ukraine a discounted gas price.