March 29. 2024. 2:02

The Daily

Read the World Today

Ukraine minister: G7 support crucial for longer war with Russia


Serhiy Marenko (pictured) , Ukrainian finance minister, said that the war may last longer than anticipated.

Marchenko stated that the Group of Seven (G7) Finance Ministers assured him at this week’s International Monetary Fund & World Bank Meetings in Washington, they would support Ukraine as long as necessary. This is a change from last year when Ukraine was under more pressure to end its war.

He said that the new pledge of economic assistance — a four-year, $15.6 billion IMF loan — was "tremendously important" for Ukraine. The country is now in its second year of war following Russia’s invasion of 24 February 2022.

He said: "It is a great help to us because we know that the IMF and G7 nations, as well as supporters of Ukraine will provide money for our needs over a period of four years. Compared to the last spring meeting, I feel more confident that we can win this war."

He acknowledged that the military conflict may continue for some time.

"We should prepare for the possibility that this war may last longer than expected," he said. He noted that G7 partners are no longer pressuring Ukraine to accept a ceasefire — like they did last year – but instead signaling their support of a prolonged conflict.

Marchenko said that Ukraine was grateful for the US military and economic support, which has totaled $50bn since the beginning of the conflict. He also expressed his confidence in the US Congress to continue bipartisan support for Ukraine despite the calls from some Republicans for funding cuts.

He stressed the need to start some reconstruction including energy infrastructure, road, schools, and housing. Ukraine also needed to increase its capacity to absorb funds. He said that one of the key steps would be to develop war insurance. This is already being done by the World Bank’s Multilateral Investment Guarantee Agency.

Advertisement

The minister stated that he has not yet begun discussions on whether or not to extend the two-year moratorium on debt agreed to in August.

He said that it was important to safeguard the stability of the markets in order to ensure future reconstruction. "We’ll have plenty of time to find a resolution."

Marchenko stated that there is also a growing willingness among donors to use Russia’s frozen assets for Ukraine’s reconstruction, compared to six months ago.

"Our partners are considering the use of Russian assets to help Ukraine. "They don’t want wait until the end of the war, they want to find an answer faster," he stated.

Marchenko stated that U.S. Treasury officials told him that the United States has a small amount of Russian assets. However, the issue is more of a concern for Japan, Switzerland, and EU countries. He said G7 officials told him that they supported the idea of utilizing Russian assets but needed to find legal solutions to "a very complex question."

In an interview with CNN, US Treasury Secretary Janet Yellen warned on Saturday (15 April) that there are legal restrictions on using frozen Russian funds to pay for damages to Ukraine.

Marchenko said that there was intense discussion about financial stability at the meetings this week, following the collapse of the two U.S. and one Swiss banks last month. However, he did not see any spillover effects on the Ukrainian banking system.

Share this article: