The Prime Minister will warn world leaders this week at the first in-person meeting of G7 leaders since Putin’s full-scale invasion of Ukraine that any evidence of weariness or waning Western support for Ukraine will directly play into President Putin’s hands.
The initial weeks and months of the Ukrainian resistance have been marked by a remarkable outpouring of solidarity for the Ukrainian people and an unwavering show of worldwide unity. It is crucial that this continue over an extended period of time. Putin’s crimes against humanity and Russia’s actions cannot be seen as normal by the international community.
The Prime Minister discussed the urgent requirements of the Ukrainian Government with President Zelenskyy on his second trip to Kyiv since the start of the war last week. This includes urgent financial support to enable the Ukrainian state to function as well as military support, unblocking the Russian military’s blockaded exit routes.
If urgent financial assistance is not provided, the Ukrainian government worries that it may run out of money by the fall. The UK is prepared to offer additional $525 million (or £429 million) in loan guarantees to the World Bank later this year to assist with this urgent need.
With the addition of the latest assistance, the total financial assistance provided to Ukraine this year—including UK loan guarantees—now stands at £1.3 billion ($1.5 billion). This includes both economic and humanitarian aid.
Today’s G7 Summit will feature a virtual address by President Zelenskyy. The Prime Minister will utilize an intervention at the Summit after his speech to mobilize support for Ukraine. He will expand on the considerable commitments previously made since February by urging the G7 nations to support Ukraine in the long run.
The Prime Minister said:
“Future generations will be awed and inspired by the truly heroic Ukrainian resistance in the face of Putin’s barbarism.
“Ukraine can win and it will win. But they need our backing to do so. Now is not the time to give up on Ukraine.
“The UK will continue to back Ukraine every step of the way, because we know that their security is our security, and their freedom is our freedom.”
Loan guarantees from the UK are crucial in helping Ukraine fill its funding deficit because they allow multilateral development banks like the World Bank to give the Ukrainian government much more money than they otherwise could. These loans are being used to pay for expenses such as public sector salaries in Ukraine and the maintenance of hospitals and schools.
The Ukrainian state will be preserved thanks to these investments. The cost of the loan is only covered by the UK if the Ukrainian Government is unable to make payments. They represent both an investment in Ukraine’s strategic adaptability and a vote of confidence in the future of the nation.
Without international assistance, the Ukrainian government would be compelled to take actions that jeopardize their long-term economic security and macroeconomic stability, such as depleting reserves and printing money. Such policies would inevitably result in widespread inflation and a humanitarian catastrophe for the nation.