Shmyhal calls on G7 to provide Ukraine with urgent funding

Ukrainian Prime Minister Denys Shmyhal has said that Ukraine needs at least $15 billion over the next three months to cover its operational budget needs, and has called on the Group of Seven countries to provide urgent funding to the country.

He said this at a session with G7 finance ministers on Thursday, May 19, Ukrinform reports, citing the website of the Ukrainian government.

"The aggressor is trying to create a food crisis by limiting the opportunities for Ukrainian exports. It provokes a migration crisis, forcing millions of Ukrainians to seek refuge in European countries. It uses energy resources as a hybrid weapon, which is already causing a sharp rise in global inflation," Shmyhal said.

He cited data from the International Monetary Fund forecasting a slowdown in economic growth this year for 143 countries, which account for 86% of world GDP. Global growth, according to the IMF, will slow from about 6.1% in 2021 to 3.6% in 2022 and 2023. He said that all these were the consequences of the war Russia had unleashed.

"Today, Ukraine stands the ground defending the whole of Europe and the world. We have proven our resilience. We have demonstrated that we stand ready to take the blow on all fronts. The Ukrainian banking system shows stability. The energy system proves stable. The tax and credit incentives introduced by the Government have allowed some businesses to resume their work," Shmyhal said.

At the same time, according to him, the monthly deficit of the Ukrainian budget is about $5 billion. That is why financial support is essential for Ukraine.

"Nowadays we call on the G7 countries to provide Ukraine with emergency funding for the imminent needs of the budget. We need at least $15 billion over the next three months to cover such needs. This is as critical to us as the arms you provide to combat Russian aggression," Shmyhal said.

He also welcomed the European Commission's proposal to disburse EUR 9 billion to Ukraine as macro-financial assistance. According to him, Ukraine also hopes for a speedy decision by the United States on a $40 billion aid package, of which up to $9 billion can be provided to fill the Ukrainian budget.

He stressed that such support from the G7 countries would be a solid foundation for Ukraine's victory.

The European Commission earlier proposed a plan on assistance to Ukraine and its post-war reconstruction, which provides for long-term reforms and investments, as well as immediate short-term macro-financial assistance of up to $9 billion in 2022.

Photo credit: Government website