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support the government in this pivotal moment, and is fully coordinated with international partners. According to Finance Minister Marchenko and Prime Minister Denis Shmygal, Ukraine needs at least $5B a month to cover its operational budget needs.
G7 finance ministers plan to allocate €15B in aid to Ukraine. The finance ministers of the G7 want to agree on a €15B financial aid package for Ukraine at a meeting in Bonn this week, reported Reuters. The package will provide three months of short-term financing, mainly in grants that do not need to be repaid. Moreover, the United States has already offered to provide half of the sum, which is $7.5B in grants, noting that G7 ministers want to agree on a joint communiqué at their meeting. Earlier this week, G7 countries discussed a package of financial aid to Ukraine to support the budget in the amount of almost €30B. According to the Finance Minister of Ukraine, Ukraine needs an additional $5B monthly to cover the budget deficit due to a state revenue shortage.
The EBRD is allocating €53M for food security in Ukraine. The European Bank for Reconstruction and Development (EBRD) is providing €53.3M in loan financing to two banks and one company to strengthen food security during the war in Ukraine. The EBRD promotes food security by concluding risk-sharing agreements with individual local banks and leasing companies. The EBRD will cover the share of risks under agreements with ProCredit Bank, OTP Bank, and OTP Leasing, which total €30M. According to the EBRD, the risk-sharing instruments will increase the ability of local financial institutions to provide financing to private Ukrainian companies operating in critical agricultural sectors such as growing and processing crops, the food industry, transportation, and imports.
EU approves 500 million euro tranche of military aid for Ukraine. Out of the total, 490 million euros are earmarked for military equipment, and 10 million euros to cover protective gear, first aid kits and fuel. Previously the European Union had approved another 1.5 billion euros in military aid for Ukraine, bringing the total to 2 billion euros.
Ukraine will receive $10B of support, of which $4.5B has already been received. “We have already negotiated funds to support Ukraine through various instruments: loans, grants, aid, projects $ 10 B, and we already received more than $ 4.5 B,” said Prime Minister Denys Shmyhal for RBK.UA. As Finance Minister Serhiy Marchenko noted last week, Ukraine's budget needs an additional $5B in funding every month. According to Shmyhal, Ukraine has agreed with the International Monetary Fund that it will help Ukraine collect this difference monthly. "The IMF has actually taken the lead, creating this administrative account through which all partners can help Ukraine. It can be direct budget financing through this account, grants, loans, and SDR - special drawing rights," he said.
The United Kingdom announced £1.3B in military support for Ukraine. The UK will provide an additional £1.3B ($1.6B) in military support and aid to Ukraine, said the UK Treasury. Earlier this week, UK Prime Minister Boris Johnson promised £300M ($370M) of military support to Ukraine, including electronic warfare equipment, a counter-battery radar system, GPS jamming equipment, and thousands of night vision devices. The treasury said this would be funded from the £1.3B increase. The new pledge almost doubles the UK’s previous spending commitments for the war in Ukraine.
39 UKRAINE Country Report XXXX 2018 www.intellinews.com