G7 finance ministers pledge strong response to violation of oil price ceiling by Russia
Communiqué following the meeting supports the idea of using the proceeds of frozen Russian assets for Ukraine
The G7 countries will continue to push for global compliance with the ceiling on Russian oil prices, according to a communiqué issued on Saturday following the meeting of the Group of Seven finance ministers in Italy.
"We will work hard to ensure that the oil price ceiling is respected without disturbing the stability of the global market," the document says.
The ministers stressed that their countries "will respond decisively to violations of the price ceiling, including by imposing sanctions on those who circumvent the regime".
In addition, the ministers stated that their countries are ready to continue to impose sanctions against Russia, "in particular to reduce Russia's revenues from energy sales and to reduce its ability to extract energy resources in the future".
In the communiqué following the meeting, the G7 finance minister supports the idea of using the profits from frozen Russian assets for the benefit of Ukraine.
MP Yaroslav Zheleznyak presents the main points of the document agreed by the ministers.
Support for Ukraine:
- The G7 countries reaffirmed their unwavering support for Ukraine, saying they will help it as long as it needs.
- They welcomed the adoption of the US "Ukraine Security Supplemental Appropriations Act", which includes $61 billion in economic and military support.
- The EU has provided €6 billion in bridge financing under the €50 billion European Fund for Ukraine.
- The UK has pledged £3bn annually until 2030.
- Japan approved additional budget support worth $2 billion for 2024.
- Canada announced the provision of CAD 4.2 billion in military, development and financial assistance.
Sanctions against Russia:
- The G7 remains committed to strengthening financial and economic sanctions aimed at reducing Russia's sources of revenue and its ability to wage war against Ukraine.
- Support for the EU's decision to use the extraordinary profits from frozen Russian sovereign assets for the benefit of Ukraine.
- Explore potential ways to use the extraordinary proceeds from frozen Russian assets to provide additional financial support to Ukraine before the G7 meeting in Puglia in June.
Financial sustainability and reforms:
- The positive conclusion of the first three reviews of the IMF Extended Programme for Ukraine is welcomed.
- A successful conclusion of the fourth review of the programme is expected in June.
- Support for Ukraine's efforts to reach a timely debt workout agreement with private creditors in line with the IMF programme.
Ukraine's recovery conferences are expected to be held in Berlin in 2024 and in Rome in 2025.
Background. Meanwhile, it was reported that Hungary has blocked the transfer of military aid to Ukraine from the profits from blocked Russian assets.
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