IMF warns domestic politics could derail key Ukraine reforms

KIEV (Reuters) - The International Monetary Fund warned on Tuesday that Ukraine's domestic politics could derail vital reforms, such as raising the pension age and tackling corruption, that are needed to crank up economic growth and tame high public debt.

The Fund released $1 billion (803 million pounds) to Kiev this week as part of a $17.5 billion aid-for-reforms bailout for the Ukrainian economy, which plunged into recession following the Russian annexation of Crimea in 2014 and the outbreak of separatist violence.

"The main risks on the domestic side stem from reform delays due to the narrow majority of the governing coalition in parliament and possible policy reversals as key reforms face strong pushback from vested interests," said an IMF report.

(Reporting by Natalia Zinets and Alexei Kalmykov; writing by Matthias Williams; editing by Andrew Roche)