May 20, 2022 - World

G7 countries pledge nearly $20 billion in financial aid for Ukraine

Denys Shmyhal, Ukraine's prime minister, virtually attending a meeting with G7 finance ministers and central bank governors in Germany, on May 19.
Denys Shmyhal, Ukraine's prime minister, virtually attending a meeting with G7 finance ministers and central bank governors in Germany, on May 19. Photo: Frederico Gambarini/DPA/Bloomberg via Getty Images

G7 countries said they would provide nearly $20 billion in financial aid for Ukraine on Friday to help the country through Russia's unprovoked invasion.

Why it matters: Ukraine said in April that it had requested $50 billion in financial assistance from G7 countries to help stabilize its government and its export-dependent economy, which the invasion has crippled.

  • Approval of the $19.8 billion financial assistance came at the end of two days of meetings in Germany between G7 finance leaders on deepening global inflation from pandemic supply chain issues and Russia's war in Ukraine.

What they're saying: "We will continue to stand by Ukraine throughout this war and beyond and are prepared to do more as needed," a joint statement from G7 countries released Friday said.

  • "We are working closely with Ukraine to safeguard its macroeconomic stability in face of the challenges posed by Russia's war of aggression, massive destruction of critical infrastructure and disruption of traditional shipping routes for Ukrainian exports," the statement said.

By the numbers: An analysis by the Economist Intelligence Unit released in March projected that the invasion would crater Ukraine's economy by a whopping 47% in 2022.

  • The damage to Ukraine's economy and overwhelming sanctions on Russia have set off global food security concerns. Both countries are major producers and exporters of wheat and barley, and Ukraine specifically is a major exporter of corn and sunflower oil.
  • The International Monetary Fund estimated in April that Ukraine's government needs $5 Billion a month to keep its economy functioning.

The big picture: Ukrainian President Volodymyr Zelensky called on the international community in early May to prevent Russia from blockading its ports to help prevent a global food crisis.

  • Qu Dongyu, director-general of the United Nations' Food and Agriculture Organization, on Thursday called for greater funding for global agriculture to help avoid a crisis, noting that conflict "remains the single greatest driver of hunger."
  • "My message today is more relevant than before: agriculture is one of the keys to lasting peace and security," Dongyu said.

Go deeper: Congress approves $40 billion aid package for Ukraine

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