U.S. provides more aid to Ukraine, threatens to step up sanctions on Russia

U.S. Treasury Secretary Jack Lew departs after a Financial Stability Oversight Council open meeting at the Treasury Department in Washington January 21, 2015. REUTERS/Jonathan Ernst

KIEV (Reuters) - The United States signed an agreement on Wednesday to provide $2 billion in loan guarantees to help war-torn Ukraine with "near-term social spending" in 2015 and said it was prepared to step up economic sanctions against Russia if necessary.

After signing the deal with Ukrainian Finance Minister Natalia Yaresko, U.S. Treasury Secretary Jack Lew criticised what he called "Russian aggression", a reference to Moscow's support for separatists battling Kiev's forces in eastern Ukraine which has triggered the Western sanctions on Moscow.