G7: Germany promises 1 billion euros in subsidies for Ukraine | News | DW

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German Finance Minister Christian Lindner on Thursday announced a contribution of 1 billion euros ($1.1 billion) to Ukraine’s budget.

This came at a summit of finance ministers from the Group of Seven (G7) industrialized nations being held near the German city of Bonn.

Germany currently hosts the rotating presidency of the G7.

The money is expected to come from Germany‘s 2022 budget rather than loans.

Financial support to keep Ukraine going

It aims to support kyiv’s war-stricken finances. It is estimated that the Ukrainian government will need $15 million over the next three months to fund its operations, including paying salaries, as the war in Russia has decimated tax revenues.

The G7 is coordinating “commitments to fund Ukraine’s government functions,” Lindner said at the summit.

“We need to secure the liquidity of the Ukrainian state,” he added.

The German grant is part of $18.4 billion in transfers and loans committed by G7 ministers, according to a draft statement seen by Reuters news agency on Thursday.

“We will continue to support Ukraine throughout this war and beyond and stand ready to do more if needed,” he said.

DW reporter at the G7 summit, Ashutosh Pandey, said there was “a growing understanding among the ministers who have gathered here that Ukraine needs help and everything must be done to prevent it. to sink”.

“We know that Ukraine is losing money and it needs money to meet its daily needs,” he added.

What have other countries promised?

On Thursday, the US Senate approved a $40 billion military, economic and humanitarian aid package for Ukraine. Of this amount, 7.5 billion dollars are intended to fill gaps in kyiv’s budget.

Speaking at the G7 meeting, US Treasury Secretary Janet Yellen said ministers agreed to provide Ukraine with the financial resources it needs in its fight against the Russian invasion.

“The message was: ‘We support Ukraine. We’re going to step up with the resources they need to get through this,'” Yellen said.

The European Commission said it would pledge up to €9 billion in “macro-financial assistance in the form of loans”, which would be complemented by support from international partners, including the G7.

wmr/rt (AFP, Reuters, AP)

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