G7 countries to provide US$19.8 billion in aid to Ukraine
G7 countries to provide US$19.8 billion in aid to Ukraine
G7 countries to provide US$19.8 billion in aid to Ukraine
KOENIGSWINTER, Germany -
The Group of Seven leading economies agreed Friday to provide US$19.8 billion in economic aid to Ukraine to help keep tight finances from hindering its ability to defend itself from Russia's invasion.
German Finance Minister Christian Lindner told reporters that US$9.5 billion of the total amount was mobilized at meetings of the G-7 finance ministers in Koenigswinter, Germany, this week.
“We agreed that Ukraine's financial situation must have no influence on Ukraine's ability to defend itself successfully,” he said. “We need to do our utmost to end this war.”
The money is intended to help the Ukrainian government keep basic services for its people functioning, and is separate from efforts to provide the country with weapons and humanitarian aid.
The needs are vast.
Kristalina Georgieva, the International Monetary Fund's managing director, last month said Ukraine's financial ministry had estimated the country will need $5 billion in international assistance per month to help cover essential government services and keep the country's economy going.
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,” the G-7's communique stated.
U.S. Treasury Secretary Janet Yellen and other leaders spoke this week about the need for allies to put together enough additional aid to help Ukraine “get through” the Russian invasion.
“All of us pledged to do what's necessary to fill the gap,” Yellen said Thursday. “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 finance ministers of the G-7 - which includes Canada, France, Germany, Italy, Japan, the United Kingdom and the U.S. - also have grappled with deepening inflation, food security concerns and other economic issues during their talks.
A communique marking the end of their meetings addressed commitments to addressing debt distress in low-income countries, trying to ease the fallout from the coronavirus pandemic and staving off inflation rates “that have reached levels not seen for 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. A portion of that U.S. funding is included in the G-7 package for Ukraine.
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 was a rally for funds to Ukraine and those affected by the 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.
That money will be spent on supporting farmers, addressing the fertilizer supply crisis, and developing land for food production, among other issues.
Other issues of concern for G-7 finance leaders touched on the need for countries to increase scrutiny and regulation of cryptocurrency and other digital assets and streamlining pandemic responses.
------
Moulson reported from Berlin
____
Get in touch
Do you have any questions about the attack on Ukraine? Email dotcom@bellmedia.ca.
Please include your name, location, and contact information if you are willing to speak to a journalist with CTV News.
Prices have been easing slightly recently, but affording a mortgage is still a very difficult task for many Canadians. How much of a mortgage can you afford? Contributor Christopher Liew breaks it down in an exclusive column for CTVNews.ca.
The Bank of Canada's strategy of rapidly increasing its key interest rate in an effort to tackle skyrocketing inflation will likely trigger a recession, says a new study released Tuesday from the Canadian Centre for Policy Alternatives.
Even though it may seem years away, saving for retirement is a top priority among 26 per cent of Canadians aged 18 to 34, a recent survey from the Healthcare of Ontario Pension Plan found. However, 79 per cent of respondents in that age group say saving for retirement is prohibitively expensive.
A new report says Canada should replace its "haphazard and unpredictable" approach to minimum wages across the country with a clear formula based on average incomes.
The Canada Day long weekend saw gas prices plummet in parts of the country, but the relief at the pumps may not stay for very long, analysts say. The decreases come after crude oil prices slid in June following the U.S. Federal Reserve's interest rate hikes, sparking fears of a recession.
As stocks continue to slump, it can be easy to let your emotions take over if you've got money invested in the market. But experts agree that there's no need to panic if you're invested in the right type of portfolio with the right level of risk.
With increasing rent prices likely to be the reality for many Canadian tenants, some may be wondering how to navigate rising costs, or whether any course of action can be taken, if any. Legal experts across the country share their advice on how to handle a rent hike.
