G7 leaders commit to provide Ukraine with sufficient financial assistance in 2024

Leaders of the Group of Seven have committed to helping Ukraine in meeting its "urgent financing needs" and to participate in its post-war recovery following an online summit on 24 February. Source: G7 Leaders' Statement, cited by European Pravda  The G7 leaders emphasise that Russia "must not succeed in wrecking Ukraine's economy to make up for its failures on the battlefield".

Quote: "We will help Ukraine meet its urgent financing needs, and assist other vulnerable countries severely affected by the impacts of Russia's war," they noted.

In this regard, the G7 leaders welcomed the approval by the European Union of a four-year EUR 50 billion macro-financial support programme for Ukraine, as well as the imminent provision of budget support by Japan in the first quarter of 2024 and the new funding announced by Canada. "We urge the approval of additional support to close Ukraine's remaining budget gap for 2024," the G7 leaders added. In addition, the G7 reiterated its commitment to Ukraine's reconstruction; they will continue to work with key donors, and will hold new reconstruction conferences in Berlin in 2024 and Rome in 2025.

Macro-financial aid to Ukraine in 2024 faces difficulties due to the delay in the approval of supplemental funding in the US Congress. It is possible that its final decision will only include military support. Ukraine is heavily dependent on macro-financial assistance from its partners, as it spends the vast majority of its domestic revenues on military purposes.

Reminder: Earlier this week, the relevant committees of the European Parliament supported the decision to create a multi-year financial assistance programme for Ukraine worth EUR 50 billion.

European Commission President Ursula von der Leyen said that the EU expects to provide the first funds to Ukraine in March.