G7 finance leaders promise support for Ukraine, vow to enforce sanctions against Russia

The Group of Seven (G7) finance leaders set up a new supply chain initiative as they vowed to provide more support for Ukraine in a show of unity against Russia’s war.

The aid for Ukraine through early 2024 was nudged up to $44bn in a move that enabled the International Monetary Fund (IMF) to approve $15.6bn of support over four years, Bloomberg reported.

“We call for an immediate end of Russia’s illegal war against Ukraine, which would clear one of the biggest uncertainties over the global economic outlook,” they said in a joint statement.

The finance leaders and central bank chiefs ended three days of talks in the Japanese port city of Niigata, with a pledge to bring inflation under control while aiding those suffering the most from surging prices.

The leaders highlighted the need to stay “agile and flexible” on economic policy amid heightened uncertainties for the global economy. The finance ministers also committed to collaborating to build more stable, diversified supply chains for developing clean energy sources and to “enhance economic resilience globally against various shocks”.

Central banks “will ensure inflation expectations remain well anchored and will clearly communicate policy stances to help limit negative cross-country spillovers”, the statement read.

US treasury secretary Janet Yellen had earlier said that the G7 nations “will stand with Ukraine for as long as it takes” to end the conflict.

“We have taken a wave of actions in the past few months to crack down on evasion. And my team has traveled around the world to intensify this work,” Ms Yellen said.

The world is facing a “historic turning point”, Japanese prime minister Fumio Kishida said in a statement issued late Friday.

“The international community is facing a historic turning point, facing divisions and conflicts such as Russia’s invasion of Ukraine and Sudan.”

The G7 will “resolutely reject the threat or use of nuclear weapons and uphold the international order based on the rule of law”, Mr Kishida said.

“As G7 chairman, I will convey my strong will to have an impact on history.”

The G7 consists of Canada, France, Germany, Italy, Japan, the UK and the US. Other invitees to the meetings in Niigata include the European Union, IMF and World Bank, and the finance ministers of Brazil, Comoros, India, Indonesia, South Korea and Singapore.

The talks in Niigata are in preparation for a summit of G-7 leaders in Hiroshima next week.