Russia's presence in Ukraine has brought Western sanctions onto Russia, but it has also pushed Ukraine to the brink of bankruptcy, and into an IMF-led $40bn bailout.

Due to the conflict, industrial production in Donetsk dropped 60 percent year on year, and in Lugansk it fell by 85 percent. Ukraine's government says it is spending $10m a day on the military campaign in the east.

And there is the human cost: official UN estimates say more than half a million east Ukrainians are now internally displaced people. The government in Kiev is providing $24m to subsidise the city finances and support reconstruction.

Paul Brennan explains the scale of Ukraine's economic challenge.

Source: Al Jazeera