London: The UK has plans to support Ukraine with an additional package of $525 million in guarantees for World Bank lending, the PM office said.
According to an official statement, PM Boris Johnson will be telling world leaders this week at the first in-person gathering of G7 leaders that any sign of fatigue or wavering in Western support for Ukraine will play directly into President Putin’s hands.
It said, “The Ukrainian Government fears it could run out of funding by the autumn unless it is given urgent financial help. To help with this pressing need the UK stands ready to provide another $525 million (or £429 million) in guarantees for World Bank lending later this year.”
The new support will bring the total amount of financial support including UK loan guarantees to £1.3 billion ($1.5 billion) and the combined UK economic and humanitarian support to Ukraine to £1.5 billion ($1.8 billion) this year.
Ukraine President Volodymyr Zelenskyy will be virtually addressing the G7 Summit on Monday.
The British government said, “Following his (Zelenskyy) address, the Prime Minister will use an intervention at the Summit to rally support for Ukraine. He will encourage all G7 countries to back Ukraine in the long-term, building on the significant pledges already made since February.
“UK loan guarantees are playing an important role in closing Ukraine’s financing gap, enabling Multilateral Development Banks like the World Bank to lend far more than they otherwise could to the Ukrainian Government. This lending is covering costs like Ukrainian public sector wages and the running of schools and hospitals.
“Without international support, the Ukrainian Government would be forced to pursue paths which compromise their macro-economic stability and long-term economic security, including running down reserves and printing money. Policies like these would directly lead to mass inflation and humanitarian catastrophe in the country.”