Boris Johnson urges G7 'not to give up' on Ukraine, vows $525mn in loan guarantees to Kyiv

Announcing that the United Kingdom is ready to provide $525mn in loan guarantees to Ukraine, British PM Boris Johnson on Saturday made it strikingly clear that any sign of "fatigue or wavering" in Western support to Kyiv will only pay directly into Russia's hands. These remarks come as Johnson addressed the leaders of the Group of Seven (G7) in the first in-person meeting ahead of the summit. He stressed that it is necessary to uphold pledges of backing Ukraine in the wake of intensifying Russian onslaught and urged the leaders "not to give up" on Ukraine as the country decisively fights back against Russia for over 100 days now.

"Ukraine can win and I will win...but they need our backing to do so," Johnson said, as quoted by 10 Downing Street.

"Now is not the time to give up on Ukraine," he asserted, adding that Britain was ready to provide another $525 million in loan guarantees later this year.

While the initial months were characterised by overwhelming global unity, the long haul of the war must not strip Ukraine of the promised support, he added. Johnson pushed for sustained support for Ukraine in order to prevent Russian behaviour and atrocities committed by Russian President Vladimir Putin from becoming "normalised" in the eyes of the world.

The UK PM also recalled his visits to Kyiv in the past months- the most recent being last week- when he spoke to Ukrainian President Volodymyr Zelenskyy about the urgent requirements of the government in terms of military and humanitarian aid. Kyiv also feared running out of funds by the autumn unless provided with urgent financial help, Johnson noted.

UK ready to provide $525mn in loan guarantees to Ukraine

Noting the imminent financial crisis, Johnson on Saturday stated that London is ready to provide Ukraine with loan guarantees worth $525 million. The funding is expected to be forwarded through World Bank lending later this year. The new support announced by Johnson brings the total financial support to Ukraine to $1.5 billion by London and economic and humanitarian aid to $1.8 billion in 2022. "The UK will continue to back Ukraine every step of the way because we know that their security is our security and their freedom is our freedom," Johnson concluded.

As the war has now raged for four months, Ukraine is facing financial pressure to meet the needs of restoration as well as supply basic needs to the victims of the war. Under such circumstances, the loan guarantees are anticipated to bridge the financing gap, enabling Multilateral Development Banks to issue more than they are permitted to. This in turn will help Kyiv to pay public sector wages and run schools and hospitals. Without policies like these, Ukraine could compromise on its macro-economic stability and long-term economic security, thus, resulting in mass inflation and humanitarian catastrophe.

(Image: AP)