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War in Ukraine: G7 plan extensive budget support


The government in Kyiv alone lacks five billion euros a month to maintain state operations. According to SPIEGEL information, the western industrialized countries want to support the country on a large scale.

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East Ukrainian city of Kharkiv

Photo: IMAGO/Aziz Karimov / IMAGO/ZUMA Wire

According to SPIEGEL information, the leading industrial nations are planning extensive financial support for Ukraine.

At the meeting of the G7 finance ministers on the Petersberg near Bonn next week, they want to initiate budget support of almost 30 billion euros for the warring country.

According to negotiators, Ukraine has quantified this financial requirement by the end of the year.

Around five billion euros a month were incurred, for example, to pay state officials or pensioners, which Ukraine, according to information from Kyiv, cannot pay on its own.

The International Monetary Fund (IMF) considers the calculations to be comprehensible and arrives at similar figures.

help as a gift

The aid is to be granted in the form of loans and grants.

So Kyiv would not have to pay everything back.

The sum of 30 billion euros assumes that the hostilities end in the course of the year.

Western countries have been negotiating intensively for weeks.

The Federal Finance Minister and FDP leader Christian Lindner are in charge, as Germany holds the G7 presidency this year.

The role increases the pressure on the federal government to set a good example with the aid.

Usually, the shares are distributed according to the level of economic output.

Germany ranks third among the G-7 countries.

However, other participating States are still opposed to the project.

A European country is said to have not yet agreed to participate.

It is also disputed whether Ukraine should actually receive money as a gift.

Agreement maybe as soon as next week

Great Britain and the USA adopt a more bold pace.

They propose confiscating large amounts of oligarch assets and using them to finance aid to Ukraine.

It is therefore still unclear whether the package can be decided on the Petersberg in the coming week.

It is also possible that the heads of state and government, including Chancellor Olaf Scholz (SPD), will only reach an agreement in June at their summit in Schloss Elmau.

The G7 includes Germany, the United States, Great Britain, Japan, France, Italy and Canada.


Source: spiegel

All business articles on 2022-05-13

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