G-7 leaders in a joint statement issued after a virtual meeting said they would work with Ukraine, international partners and international financial organisations to establish the new Donor Coordination Platform.

“Through this platform, we will coordinate existing mechanisms to provide ongoing short- and long-term support ..., coordinate further international funding and expertise, and encourage Ukraine’s reform agenda as well as private sector led growth,” they said,

The G-7 leaders said they would set up a secretariat for the platform and each member country would designate a senior government representative to oversee creation of the platform and coordination efforts.

“We firmly support efforts to secure Ukraine’s immediate financial stability and its recovery and reconstruction towards a sustainable, prosperous and democratic future, in line with its European path,” they said in the statement.

The effort will build on a recovery conference held in Berlin in October and a separate event in London in June. International donors are due to meet again in Paris on Tuesday.

G-7 leaders also pledged to help Ukraine meet winter preparedness needs and support civilian resilience, and vowed to keep drumming up international support for Ukraine’s urgent short-term financing needs.

They said they would ask G-7 finance ministers to meet shortly to discuss a joint approach for coordinated budget support in 2023, with the International Monetary Fund (IMF) to play a central role.

IMF Managing Director Kristalina Georgieva told the Reuters NEXT conference on Dec 1 it was critical to “front-load” aid to Ukraine ahead of harsh winter months, given ongoing Russian attacks on Ukraine’s infrastructure.

The IMF has provided US$2.7 billion (S$3.7 billion) in emergency financing to Ukraine and recently agreed a board monitoring programme with Ukraine that should pave the way for a larger financing programme.

World Bank President David Malpass told the same conference that the World Bank had disbursed US$18 billion to Ukraine, with much of it coming from the United States and Europe.

But the country will need US$3 billion to US$5 billion per month in budgetary assistance to keep its government running, the IMF estimates. That is up to US$1 billion a month more than it forecast in October. REUTERS