G7 finance ministers meeting in India on Thursday urged the International Monetary Fund (IMF) to provide an aid package to Ukraine, on the eve of the first anniversary of the Russian invasion of that country.
G20 finance ministers and central bank leaders are meeting from Friday in Bangalore, southern India. Their discussions will largely be devoted to the economic consequences of the war in Ukraine, one year to the day after the start of Moscow’s military intervention.
On the eve of this meeting, the fundraisers of the Group of Seven (G7) urged the IMF to grant financial support to kyiv.
“We urge the IMF and Ukraine to put in place a credible, ambitious, fully funded program with appropriate conditions by the end of March 2023,” said a joint G7 statement, issued by the Japanese presidency.
Sanctions against Moscow have “significantly weakened Russia’s ability to wage its illegal war,” the G7 finance ministers added in the statement, saying they were ready “to take further action if necessary.”
“We need additional support for Ukraine, not only on a military level, but also with regard to the continuity of the functioning of the Ukrainian state”, reacted the German Minister of Finance Christian Lindner, after the meeting.
Earlier in the day, US Treasury Secretary Janet Yellen repeated that Washington was in favor of new sanctions against Moscow.
“Our sanctions have had a very significant negative effect on Russia,” Ms. Yellen told the press.
“Strategic Failure”
“Russia is suffering in terms of budget and ability to acquire what it needs, and we will continue to impose new sanctions by working with our allies to continue to degrade Russia’s ability to fight this unjust war,” insisted the Secretary of the Treasury.
Russian President Vladimir Putin “thought to achieve victory at minimal cost […] a year later Mr. Putin’s war is a strategic failure for the Kremlin,” said Janet Yellen.
The United States, the European Union and their allies have imposed drastic sanctions against Russia since its invasion of Ukraine, hitting the highest levels of the Russian state, as well as its industry, banks and oil sector. .
Several countries, in particular China and India, have however increased their imports of Russian oil, which mitigates the effect of the sanctions.
“We must continue and strengthen the sanctions” against Russia, pleaded Thursday in India the French Minister of Economy Bruno Le Maire, according to comments reported to AFP by his delegation.
Ukraine and debt
Any discussion on Ukraine appears delicate for India, the organizing country of the G20 which has not condemned the invasion.
Russia has not confirmed at this stage whether it will send a representative to the G20 Finances which is being held Friday and Saturday in Bangalore.
But Russian Foreign Minister Sergey Lavrov is due to attend a meeting of G20 foreign ministers in New Delhi next week, which will be attended by his American counterpart Antony Blinken.
Possible debt relief for the poorest countries is also on the menu of the G20 Finance, as well as discussions related to the reform of international taxation.
About 15% of low-income countries are in “debt distress”, according to the IMF. A record 349 million people in 79 countries are facing “acute food insecurity”, writes the Washington-based institution.