G7 to pledge billions in new lifeline for Ukraine economy

The Finance Ministers and central bank governors of the G7 democracies are also discussing next steps on sanctions to pressure Russia to end the war

The Group of Seven's financial leaders are expected to unveil billions of dollars in new aid to Ukraine on May 20 and promise enough money to keep the country's devastated economy afloat as long as it fights against Russia's invasion.

The Finance Ministers and central bank governors of the United States, Japan, Canada, Britain, Germany, France and Italy - the G7 democracies - also are discussing next steps on sanctions to pressure Russia to end the war launched on February 24.

In a draft of the group's communique to be issued later on Friday, the G7 officials cited a figure $18.4 billion of budget support for Ukraine this year including $9.2 billion of recent commitments.

"The message was, 'We stand behind Ukraine'," U. S. Treasury Secretary Janet Yellen told reporters late on Thursday. "We're going to pull together with the resources that they need to get through this," Ms. Yellen said.

Friday's scheduled sessions also include discussions about the potential for debt crises amid pressures from rising food and energy prices, progress on global corporate tax reform, efforts to finance a transition to renewable energy and a the current state of the COVID-19 pandemic.

Amid the sessions, G7 officials also have been discussing proposals to reduce Russia's revenues from energy exports, including a phased embargo proposed by the European Union, forming a buyers' cartel to cap prices for Russian crude and imposing import tariffs on Russian oil.

The latter was floated by U.S. officials as a way of limiting Moscow's oil profits while keeping Russian crude supplies on the market to avoid price spikes. "Nothing is really crystallised as an obvious strategy," Ms. Yellen said about those discussions.