Chancellor outlines further economic support for Ukraine at the G7 meeting in Bonn

  • Rishi Sunak also discussed how global partners can continue to work together to mitigate the impact of war on the global economy

  • He will also urge G7 colleagues to keep up the momentum and implement the historic agreement on global tax reform – to ensure companies pay their fair share of taxes in the countries where they operate

Chancellor of the Exchequer Rishi Sunak confirms that the UK is ready to guarantee Ukraine up to $50 million in further financing to ensure continuity of electricity supply for its citizens.

The Chancellor attended meetings with G7 partners today and tomorrow, together with Bank of England Governor Andrew Bailey. They discussed efforts to support Ukraine and the way the war is increasing pressure on the global economy, including the impact on the cost of living in the UK.

Today, Rishi Sunak announced the UK’s commitment to guarantee an additional US$50 million in financing for Ukraine from the London-based European Bank for Reconstruction and Development. This comes on top of the $950 million in loan guarantees the UK has already pledged to significantly increase World Bank lending to the government of Ukraine to help meet urgent budgetary needs.

This guarantee will be used by the EBRD to provide further financing to Ukraine’s electricity grid operator, Ukrenergo, to support the continued supply of electricity to the brave Ukrainian people, subject to parliamentary approval.

This funding is part of the significant economic, humanitarian and military assistance that the UK has pledged to Ukraine, totaling well over US$3 billion.

The Chancellor also discussed the common challenges facing the global economy, including the rising cost of living worldwide, and the acute challenges facing developing countries, including heightened food insecurity.

He urged his partners in the G7 to ensure that the sanctions announced so far are implemented as a matter of urgency and enforced rigorously in order to impose maximum costs on Putin and his regime.

Before the meetings, Chancellor of the Exchequer Rishi Sunak said:

I stand firm to my G7 partners and stand by Ukraine. I am pleased to confirm UK guarantees of up to US$50 million for the EBRD’s critical support in Ukraine. This will help Ukraine continue to provide electricity to its citizens as they fight for their freedom.

It is clear that Putin’s barbaric and illegal invasion of Ukraine not only had a devastating humanitarian impact on Ukraine; It is also causing significant disruption to the global economy, the effects of which are being felt across the G7, including here at home in the UK.

I am committed to working with my G7 partners to address these common challenges.

Tomorrow the Chancellor will also call for progress on the implementation of the international tax treaty concluded last year during Britain’s G7 presidency. This historic global tax reform will ensure that companies pay their fair share of taxes in the countries where they operate. In Bonn, the Chancellor will encourage his partners to keep up the momentum and work together to reach the agreement as soon as possible.

additional Information

  • On the occasion of the meeting of the G7 finance ministers and central bank governors in Bonn, the chancellor will meet with his partners for working sessions today and tomorrow and will hold briefings with some of the finance ministers present.

  • The UK’s combined economic, humanitarian and military support package, valued at over US$3 billion, includes:

    i) approximately $500 million in economic and humanitarian grant support to Ukraine. This includes: a £220m (approx. $290m) humanitarian aid package, making the UK a leading bilateral humanitarian donor; a tax support grant of approximately £75m ($100m) provided through the World Bank Trust Fund; a £100 million (about $130 million) grant to support Ukraine’s energy security and reforms,

    ii) Nearly $1 billion in guarantees for World Bank lending to Ukraine, unlocking additional WB funding on a 1:1 basis in the coming months. These financial guarantees are subject to parliamentary approval.

    iii) $50 million in potential guarantees for loans to Ukraine by the European Bank for Reconstruction and Development (EBRD). This will be used to guarantee $100 million in EBRD loans to Ukrenergo. This guarantee is subject to parliamentary approval.

    iv) Over $1.5 billion in military aid, including thousands of anti-tank weapons

  • The G7 is also expected to discuss international solutions to tackle carbon leakage and fund pandemic preparedness.

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