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Ukraine needs $15 billion in financial aid, European Commission President Jean-Claude Juncker said, as the 28-member bloc plans to outlaw the sale of some energy equipment to the Crimea peninsula annexed by Russia.

The government in Kiev faces enormous challenges that include overcoming a recession, bringing peace to its eastern regions and ensuring adequate energy supplies, Juncker told the European Parliament in Strasbourg, France. The curbs on Crimea will be finalized today before the blocs leaders meet in Brussels, an EU official said, asking not to be named because the matter is private.

The former Soviet republic is relying on a $17 billion loan from the International Monetary Fund to stay afloat and stave off a default as its economy shrinks under the strain of the conflict and spending cuts. Foreign reserves are languishing at the lowest in more than a decade amid the deepest recession since 2009, with the bailout proving insufficient.

Ukraine will need more help, Juncker said yesterday. The assessment of Ukraines financing gap has been completed by the IMF. Ukraine will need $15 billion in addition to what is already planned.

The hryvnia has lost 48 percent against the dollar this year, the biggest decline among all currencies tracked by Bloomberg.

The authorities in Kiev are in talks over financial assistance with the IMF, the U.S. and the EU, according to Ukrainian President Petro Poroshenko. His deputy chief of staff, Valeriy Chaly, put the figure required at $10 billion or more.

Ukraine is seeking to unlock the next tranche of an IMF-led rescue and plans to approve a 2015 budget prepared by the countrys new government on Dec. 26. An IMF mission will return to Ukraine early next year, First Deputy Managing Director David Lipton said Dec. 13 in an e-mailed statement.

Next years budget draft will be submitted by Dec. 23, Ukrainian Prime Minister Arseniy Yatsenyuk said yesterday.

Locked in its worst standoff since the Cold War with the U.S. and the European Union over Ukraines future, Russias economy is also threatened by a collapsing ruble and falling oil prices. U.S. lawmakers are pushing for even tighter sanctions to squeeze President Vladimir Putins administration.

German Finance Minister Wolfgang Schaeuble warned that Russia will face bigger economic pain than Germany if Putin doesnt aid in peace efforts, while urging Russia to cooperate.

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EU Says Ukraine Needs $15 Billion as Curbs on Crimea to Tighten