G7 countries to provide $19.8 billion in aid to Ukraine
German Finance Minister Christian Lindner said that $9.5 billion was raised at the G-7 meeting in Koenigswinter (Germany) this week.
” We agreed that Ukraine’s financial position must not have any influence on Ukraine’s ability defend itself successfully,” he stated. “We need to do our utmost to end this war.”
Russia’s invasion touched on almost every topic of the finance ministers’ meetings this week, from the need to reduce reliance on Russian energy to reforming relationships between countries to maintain economic stability.
“Russia’s war of aggression is causing global economic disruptions, impacting the security of global energy supply, food production and exports of food and agricultural commodities, as well as the functioning of global supply chains in general,” a G-7 statement says.
U.S. Janet Yellen, Treasury Secretary, and other leaders discussed this week the need for allies in order to provide enough aid to Ukraine to “get through” the Russian invasion.
” All of us have pledged to fill the gap,” Yellen stated Thursday after the ministers concluded their first day of talks. “We’re going to put together the resources that they need.”
The International Monetary Fund’s latest world economic outlook says Ukraine’s economy is projected to shrink by 35% this year and next. The G-7 finance ministers, which include Canada, France and Germany, Italy and Japan, have also grappled with increasing inflation, food security concerns, and other economic issues during talks.
A communique that marked the end of their meetings addressed the commitments to address debt distress in low income countries, trying to ease fallout from the coronavirus epidemic and staving off rising inflation rates “that have exceeded levels not seen since decades.” “
As the finance ministers were meeting in Germany, the U.S. overwhelmingly approved its own $40 billion infusion of military and economic aid for Ukraine and its allies. The G-7 package for Ukraine included a portion of the U.S. funding.
The United Kingdom committed $50 million toward Ukraine from the London-based European Bank of Reconstruction and Development, Treasury chief Rishi Sunak said.
“This comes on top of the $950m in loan guarantees that the UK has already committed to significantly scale up World Bank lending to the Government of Ukraine to help meet urgent fiscal need,” according to a news release from Sunak’s office. This week saw a rally to raise funds for Ukraine and the people who were affected by war.
Treasury and several global development banks announced Wednesday that they would spend tens of billions to work “swiftly to bring to bear their financing, policy engagement, technical assistance” to prevent starvation prompted by the war, rising food costs and climate damage to crops. This money will be used to support farmers, address the fertilizer supply crisis and develop land for food production. Other issues of concern for G-7 finance officials included the need for countries increase scrutiny and regulation of digital assets and cryptocurrency, and streamlining pandemic response.
Moulson reported from Berlin.
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