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Sunak backs more funding for Ukraine power

·Finance Reporter, Yahoo Finance UK
·2-min read
U.S. Treasury Secretary Janet Yellen, Canada's Finance Minister Chrystia Freeland, Germany's Finance Minister Christian Lindner, British Chancellor of the Exchequer Rishi Sunak and other attendees pose for a family photo during the G7 Summitin Koenigswinter, near Bonn, Germany May 19, 2022. REUTERS/Thilo Schmuelgen
Chancellor Rishi Sunak is in Germany for a G7 meeting. Photo: Thilo Schmuelgen/Reuters

The UK will guarantee a further $50m (£62m) in financing to help Ukraine's electricity provision, chancellor Rishi Sunak said at a G7 meeting.

The UK's commitment comes on top of the $950m in loan guarantees that the Treasury has already guaranteed to scale up World Bank lending to Ukraine to help meet urgent fiscal needs.

This guarantee will be used by the EBRD to provide further financing to the Ukrainian electricity grid operator, Ukrenergo to support continued provision of electricity to the Ukrainian people, subject to approval by parliament.

Read more: Rishi Sunak's 'economic storm' warning prompts louder calls for emergency budget

Ahead of the Group of Seven (G7) rich economies meetings in Bonn, Germany, Sunak said: “I remain steadfast with my G7 partners in standing with Ukraine. I am pleased to confirm up to $50m in UK guarantees for EBRD critical support in Ukraine. This will help Ukraine continue to provide electricity to its citizens as they fight for their freedom.

“It’s clear that Putin’s barbaric and illegal invasion of Ukraine has not only had a devastating humanitarian impact on Ukraine; it is also causing significant disruption to the global economy, the impacts of which are being felt across the G7, including here at home in the UK.

“I am determined to work with my G7 partners to confront these shared challenges.”

The UK’s combined economic, humanitarian and military package of support to Ukraine totals over $3bn.

Sunak is also set to urge the G7 on Friday to make progress on implementing a global corporate tax deal struck last year.

"In Bonn, the chancellor will encourage his partners to maintain momentum and collaborate to deliver on the agreement as swiftly as possible," the Treasury said.

Read more: M&S warns Rishi Sunak online sales tax will punish high street

Sunak is also set to discuss efforts to support Ukraine and the ways in which the war is adding to pressures on the global economy, including impacts on the cost of living in the UK.

Prime minister Boris Johnson has raised "significant concerns" with Ukrainian president Volodymyr Zelensky about rising food prices linked to the Russian invasion.

In a call this morning, the pair looked at options to "open up critical sea and land supply routes for Ukrainian grain stocks", and committed to directing their teams to "work urgently on the next steps", Downing Street said.

Watch: Why are gas prices rising?

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