The G7 and the IMF reaffirm their support for Ukraine
The G7 and the IMF on Wednesday (12 October) reiterated their support for Ukraine “The Time It Takes” to deal with the multi-billion dollar economic consequences of the invasion while the country is the target of a new wave of Russian attacks.
“The G7 will support Ukraine for as long as necessary and remain committed to providing assistance to meet the most pressing financial needs.”announced the finance ministers of the seven most developed democracies in a joint statement.
For her part, the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, during an exchange with the President of Ukraine Volodymyr Zelenskyy, announced that the institution would work on creating a permanent forum for the coordination of aid.
“I think it would make sense if we created a financial aid coordination system similar to what was created at Rammstein in relation to military aid.”said Mr Zelensky, speaking via videoconference at an interministerial meeting organized by the IMF and the World Bank, which brought together the states providing financial support to the country.
Need $38 billion in aid
He put Ukraine’s funding needs at $38 billion to limit its deficit this year.
“Yes, President Zelensky, we will open a forum as soon as possible”assured Ms. Georgieva, specifying that they will meet regularly to adjust economic aid to Ukraine. She also reminded that the Ukrainian government’s monthly funding needs range from three to four billion dollars.
The head of the IMF also announced that a team is coming out of the fund “Will meet with the Ukrainian team immediately to set the macroeconomic framework and what that means in terms of budget”.
US Treasury Secretary Janet Yellen, who was also present, stressed the need “Coordinated and unified efforts of the G7, international financial institutions and all of Ukraine’s partners” to help him win the war but also to rebuild the country.
Russian oil talks
Earlier in September, the World Bank and the European Commission had estimated Ukraine’s needs for reconstruction and economic recovery at $350 billion, a bill that continues to grow as the country’s destruction continues.
In addition, in order to limit Russia’s ability to continue the war, the G7 have been discussing for several weeks imposing a price cap on Russian oil, which is essential for financing the Kremlin’s military budget.
Australia has joined this initiative, which has yet to be approved by European Union Member States once the mechanism has been agreed by the G7.
Earlier Wednesday, Russian President Vladimir Putin condemned the proposal, which has the backing of the United States and the European Union.
“Some Western politicians are destroying the world economy with their reckless decisions and are effectively threatening the well-being of billions of people”Putin said at an energy forum in Moscow on Wednesday.
The Kremlin has warned that Russia will stop supplying oil to countries that have introduced such a cap.
In the talks, it must be determined in particular at what level the upper limit is to be set, which must be above the production costs so that Russia has an interest in supplying the importing countries.
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