- Chancellor confirms that the UK stands ready to guarantee up
to $50 million for further financing to Ukraine to continue
electricity provision during latest G7 meeting in Germany.
-
also discussed how global
partners can continue to work together to soften the war’s
impact on the global economy
- He will also urge G7 counterparts to maintain momentum behind
and deliver the historic agreement on global tax reform –
ensuring companies pay their fair share of tax in the countries
in which they operate.
The Chancellor of the Exchequer confirms that the UK stands
ready to guarantee up to $50 million for further financing to
Ukraine, to help ensure the continued provision of electricity to
its citizens.
The Chancellor attended meetings with G7 partners today and will
continue to do so tomorrow, alongside the Bank of England
Governor Andrew Bailey. They discussed efforts to support Ukraine
and the ways in which the war is adding to pressures on the
global economy, including impacts on the cost of living in the
UK.
Today, announced the UK's commitment
to guarantee $50million, of further financing to Ukraine from the
European Bank of Reconstruction and Development, which is
headquartered in London. This comes on top of the $950m in
loan guarantees that the UK has already committed to
significantly scale up World Bank lending to the Government of
Ukraine to help meet urgent fiscal needs.
This guarantee will be used by the EBRD to provide further
financing to the Ukrainian electricity grid operator, Ukrenergo
to support continued provision of electricity to the brave
Ukrainian people, subject to approval by Parliament.
This funding forms part of the significant economic, humanitarian
and military support the UK has committed to Ukraine, totalling
well over $3 billion.
The Chancellor also discussed the shared challenges facing the
global economy, including the rising cost of living globally, and
the acute challenges faced by developing economies including
heightened food insecurity.
He pushed his partners in the G7 to ensure that the sanctions
announced so far are being urgently implemented and strongly
enforced to exert maximum cost on Putin and his regime.
Ahead of the meetings, Chancellor of the Exchequer,
said:
“I remain steadfast with my G7 partners in standing with Ukraine.
I am pleased to confirm up to $50million in UK guarantees for
EBRD critical support in Ukraine. This will help Ukraine
continue to provide electricity to its citizens as they fight for
their freedom”.
“It’s clear that Putin's barbaric and illegal invasion of Ukraine
has not only had a devastating humanitarian impact on Ukraine; it
is also causing significant disruption to the global economy, the
impacts of which are being felt across the G7, including here at
home in the UK.”
“I am determined to work with my G7 partners to confront these
shared challenges.”
Tomorrow, the Chancellor will also call for progress on the
implementation of the international tax agreement that was struck
last year during the UK’s presidency of the G7. This
historic global tax reform will ensure companies pay their fair
share of tax in the countries in which they operate. In Bonn, the
Chancellor will encourage his partners to maintain momentum and
collaborate to deliver on the agreement as swiftly as possible.
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Notes to editors
- Whilst in Bonn for the G7 Finance Ministers and Central Bank
Governors meeting, the Chancellor will meet with his partners for
working sessions over today and tomorrow and will have bilats
with some of the attending finance ministers.
- The UK’s combined economic, humanitarian and military package
of support, totalling over $3 billion comprises:
-
- around $500 million in economic and humanitarian grant
support for Ukraine. This comprises: a £220 million (c.$290m)
package of humanitarian aid, making the UK a leading
bilateral humanitarian donor; a c.£75m ($100m) fiscal support
grant, channelled through the World Bank Trust Fund; a £100
million (c.$130m) grant to support Ukraine’s energy security
and reforms,
- Almost $1 billion in guarantees on World Bank lending to
Ukraine, unlocking additional WB financing on a 1:1 basis
over the coming months. These financial guarantees are
subject to parliamentary approval.
- $50 million in potential guarantees on lending to Ukraine
by the European Bank of Reconstruction and Development
(EBRD). This will be used to guarantee $100 million of EBRD
lending to Ukrenergo. This guarantee is subject to
parliamentary approval.
- Over $1.5 billion in military aid, including thousands of
anti-tank weapons
- The G7 is also expected to discuss international solutions to
combat carbon leakage and financing for pandemic preparedness.
