G7 nations pledge $19.8 billion to bolster Ukraine's finances

Destroyed trams are seen in a depot during Ukraine-Russia conflict in the southern port city of Mariupol, Ukraine, on Saturday. - Reuters

The G7 industrialised nations have pledged $19.8 billion (18.7 billion euros) to shore up Ukraine's public finances as Kyiv battles Russia's invasion, said the closing statement of the group's finance ministers on May 20.

The funds will be used "to help Ukraine close its financing gap and continue ensuring the delivery of basic services to the Ukrainian people," said the statement.

Christian Lindner told reporters that $9.5 billion of the total was mobilized at meetings of the G-7 finance ministers this week. He says the goal is to ensure that Ukraine's financial situation does not impact Ukraine's ability to defend itself from Russia's invasion.

The finance ministers and central bank governors of the United States, Japan, Canada, Britain, Germany, France, and Italy - the G7 democracies - also are discussing the next steps on sanctions to pressure Russia to end the war launched on February 24.

"The message was, 'We stand behind Ukraine'," United States' Treasury Secretary Janet Yellen told reporters late on Thursday. "We're going to pull together with the resources that they need to get through this," Yellen said.

Friday's scheduled sessions also include discussions about the potential for debt crises amid pressures from rising food and energy prices, progress on global corporate tax reform, efforts to finance a transition to renewable energy, and the current state of the COVID-19 pandemic.

(Agencies)