The International Monetary Fund (IMF) has approved a $17.1bn bailout for Ukraine to help the country's beleaguered economy, BBC News reports.

The loan is dependent on strict economic reforms, including raising taxes and energy prices.

The money will be released over two years, with the first instalment of $3.2bn available immediately.

The head of the IMF, Christine Lagarde, said the IMF would check regularly to ensure the Ukrainian government followed through on its commitments.

In March Ukraine put up gas prices by 50% in an effort to secure the bailout. The government has also agreed to freeze the minimum wage.

The bailout had to be approved by the IMF's 24-member board, which includes a Russian representative.

The IMF loan will also unlock further funds worth $15bn from other donors, including the World Bank, EU, Canada and Japan.

In December last year, Ukraine agreed a $15bn bailout from Russia, but this was cancelled after protests forced out pro-Russian President Viktor Yanukovych. On Wednesday, April 30, the IMF warned that Russia was "experiencing recession" because of damage caused by the Ukraine crisis.

The IMF bailout will also make available $1bn in loan guarantees from the US, which was recently approved by Congress.

"Today's final approval for the $17bn IMF program marks a crucial milestone for Ukraine," said US Treasury Secretary Jacob Lew in a statement.

He added that the bailout will "enable Ukraine to build on the progress already achieved to overcome deep-seated economic challenges and help the country return to a path of economic stability and growth".

Earlier on Wednesday, an international conference in London ended with a commitment to help Ukraine recover tens of billions of dollars worth of assets which were allegedly stolen by the ousted President Yanukovych and his allies.