Finance ministers from the Group of Seven (G7) are meeting in Koenigswinter, Germany, to discuss the future of sanctions against Russia. Ukraine estimates it needs $5 billion a month in order to function, pay salaries and keep the administration running. The G7 leaders are grappling with inflation and increasing sanctions on Russia. They reportedly decided to commit $18.4 billion over the next four years to help Ukraine keep its economy running.
Japan is one of the nations that has pledged $350 million through the World Bank. It also will host US President Joe Biden and other leaders for the Quad summit in May. It is likely that Kishida will stress Japan’s support for Ukraine. Ukraine’s economy is suffering because of the war with Russia. The World Food Programme buys 50% of its grain from Ukraine.
The European Union is also contributing $18.4 billion dollars to Ukraine’s relief fund. The European Union’s suspension of its spending rules will lead to a deep recession by the end of next year. G7 finance ministers have also agreed to suspend the rules against overspending through 2023. The European Commission is expected to decide on Monday whether or not to make the same decision.
In a letter sent to Ukraine’s Foreign Minister Denys Shmyhal, the G7 countries have pledged to provide more assistance. Ukraine is suffering a food crisis and the sanctions are preventing normal trade. Wheat and fertilisers are among the commodities affected. The Ukrainian government is seeking more financial aid to recover from Russia’s offensive. Ukraine’s budget deficit is estimated at about $5 billion per month.