G7 to allocate $19.8 billion to strengthen Ukraine’s financial system

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German Foreign Minister Annalena Burbock talks with Dmitry Kuleba Germany May 13, 2022 ‘The Big Seven’ will allocate $19.8 billion to strengthen Ukraine’s financial system

Communique issued after G7 finance ministers meeting stresses importance of economic measures to counter Russian aggression

G7 countries have pledged $19.8 billion to bolster Ukraine’s financial system as kyiv battles the Russian incursion, according to a statement released after the G7 finance ministers’ meeting on Friday (May 20).

“In 2022, we will transfer $19.8 billion in budget support, including $9.5 billion in recent commitments…to help Ukraine close its budget gap and continue to provide basic services to the people of Ukraine,” the statement said.

“Furthermore, we welcome the ongoing work of the G7 and international financial institutions to further finance Ukraine, in particular the European Commission’s proposal for additional macro-financial assistance amounting to €9 billion.”

“The planned additional support for Ukrainian state-owned enterprises and the private sector through the European Bank for Reconstruction and Development and the International Finance Corporation amounts to $3.4 billion.

“We will continue to defend Ukraine’s interests throughout this war and beyond, and we stand ready to do more if necessary,” the finance ministers and central bank governors of the United States said. , Japan, Canada, Great Britain, Germany, France and Italy, which make up “The G7”.

“The main message is this: we support Ukraine,” US Treasury Secretary Janet Yellen said Thursday evening. “We’re going to pool the resources they need to get through this.”

Ukraine estimates that it needs around $5 billion a month to pay civil servants and keep the administration running.

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The participants of the meeting also discussed the possibility of introducing new sanctions against Russia in order to force Moscow to end the war being waged on the territory of Ukraine.

During the meeting, the participants discussed proposals to reduce Russia’s income from energy exports, including – the introduction of a phased embargo proposed by the European Union, the formation of a cartel of buyers to limit the price of Russian oil and the imposition of duties on Russian oil imports.

The latest proposal comes from the United States, which sees imposing duties as a way to limit Moscow’s oil revenue while maintaining market supply to avoid price spikes.

All of these proposals are still under discussion, Janet Yellen told reporters, adding that the “basic strategy” has yet to be worked out.

Another G7 spokesperson said price caps and tariffs could be problematic as producers have little incentive to comply and ultimately the main burden of additional costs will turn out to be on consumers. .

Natasha Kumar

About the author of the article

Natasha Kumar

Natasha Kumar has been a reporter at the news desk since 2018. Prior to that, she wrote about early adolescence and family dynamics for Styles and was a legal affairs correspondent for the Metro bureau. Prior to joining The Times Hub, Natasha Kumar worked as an editor at the Village Voice and as a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch contact me via my natasha@timeshub.in

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Don F. Davis