G7 To Provide $9.5 Billion In New Aid To Support Ukraine's Economy

The Group of Seven (G7) leading economies have agreed to provide $9.5 billion in new economic aid to Ukraine to help Kyiv pay public-employee salaries and ensure the government can continue to function as it defends itself from Russia's invasion.

German Finance Minister Christian Lindner told reporters on May 20 that with the addition of the $9.5 billion pledged during a meeting of the G7 finance ministers and central bank governors in Germany this week, the support for Ukraine so far this year totals $19.8 billion.

"We agreed that Ukraine's financial situation must have no influence on Ukraine's ability to defend itself successfully," Lindner said. "We need to do our utmost to end this war."

The new pledges include $7.5 billion in grants from the United States and $1 billion in grants from Germany. The remaining $1 billion will be provided by the other G7 countries in the form of guarantees and loans, the German Finance Ministry said.

"We will continue to stand by Ukraine throughout this war and beyond and are prepared to do more as needed," the G7 ministers said in a communique at the end of the two-day meeting in Koenigswinter, a town outside Bonn.

Russia's invasion touched on almost every topic covered during the meeting of finance ministers and central-bank governors from Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.

"Russia's war of aggression is causing global economic disruptions, impacting the security of global energy supply, food production and exports of food and agricultural commodities, as well as the functioning of global supply chains in general," the statement says.

U.S. Treasury Secretary Janet Yellen and other leaders spoke earlier about the need for allies to provide enough additional aid to help Ukraine "get through" the Russian invasion.

"All of us pledged to do what's necessary to fill the gap," Yellen said on May 19 after the first day of the meeting. "We're going to put together the resources that they need."

The International Monetary Fund's latest world economic outlook says Ukraine’s economy is projected to shrink by 35 percent this year and next.