Insight - West's offer to rebuild Ukraine faces reality check

A man pushes a wheelbarrow past a house damaged by fighting in the town of Debaltseve, Ukraine February 25, 2015. REUTERS/Baz Ratner

BRUSSELS/WASHINGTON (Reuters) - Western powers are preparing what they say may be their most potent weapon against Moscow's interference in Ukraine - a multi billion dollar aid package to rebuild a near-bankrupt state and realise the European dream cherished by many Ukrainians.

There is just one problem: foreign governments and international financing institutions are not willing to pour money into a dysfunctional state. Only this week the businessman brought in by the new authorities to clean up the tax service was himself suspended pending a corruption inquiry.