May 24, 2022
The Group of Seven, an organization of the world’s seven largest “advanced” economies, announced Friday that it will provide Ukraine with nearly $20 billion in economic aid due to the economic hardships that the country faces after Russia’s February invasion destroyed its economy.
“We agreed that Ukraine’s financial situation must have no influence on Ukraine’s ability to defend itself successfully,” Christian Lindner, the German finance minister, said at a press conference, according to Al-Jazeera. “We need to do our utmost to end this war.”
Earlier, U.S. Treasury Secretary Janet Yellen painted a bleak picture of Ukraine’s finances and said despite the billions Kyiv already received from the West, its financing needs are “significant.”
“What’s clear is that the bilateral and multilateral support announced so far will not be sufficient to address Ukraine’s needs, even in the short term,” she said prior to the announcement of the new funding. The needed financing would go toward paying soldiers and fulfilling pensions in the country, according to the Financial Times.
Kyiv estimated that it needed more than $15 billion over the next three months to fund itself due to the economic downturn after the start of the war while the International Monetary Fund estimates Ukraine needs about $5 billion each month to maintain basic government services.
The IMF estimates that Ukraine’s economy could shrink by 35 percent until 2024. The World Bank estimates that Ukraine is suffering $4 billion in weekly physical damage during Russian bombing.
Ukraine has benefited from an unprecedented amount of financial support since the 24 February invasion. The U.S. Senate approved last week nearly $40 billion in new aid for Ukraine that will provide military, economic, and humanitarian assistance.
“We Americans—all of us, Democrat and Republican—cannot afford to stick our heads in the sand while [Russian President] Vladimir Putin continues his vicious belligerence against the Ukrainian people,” Sen. Chuck Schumer, the Democratic minority leader, said.
Sen. Josh Hawley, R-Mo., was one of 11 Republicans to vote against the bill. He took to Twitter to point out that the $40 billion price tag is more than three times what European countries have sent to Kyiv.
“It neglects priorities at home, allows Europe to freeload, shortchanges critical interest abroad and comes w/ no meaningful oversight.”
“That’s not isolationism,” he said. “That’s nationalism. It’s about prioritizing American security and American interests.”
It is worth noting that the U.S. has already approved $13.6 billion in emergency spending for Ukraine. (See “WEAPONS POURING INTO UKRAINE, NO TALK OF PEACE, JUST MORE AMMUNITION.”)
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