KONIGSWINTER, GERMANY - G7 partners meet Thursday hoping to find a solution for Kyiv's budget troubles as the fallout from Russia's invasion of Ukraine continues to roil the global economy.
Yellen, who is attending the meeting in Koenigswinter, called on US partners to "join us in increasing their financial support" for war-scarred Ukraine. The story is similar in Europe, where the disruptions caused to supplies of raw materials, components and agricultural goods have darkened the outlook.
Around $7.5 billion of the US aid package is earmarked to help plug the hole in Ukraine's government budget caused by the war, a source close to the G7 organisers said. The discussion on how to finance Ukraine's long-term reconstruction was however "just beginning", Yellen said at a press conference in Koenigswinter Wednesday.The outbreak of the war has diminished growth prospects globally and pushed inflation rates even higher.
The continent, which has also been battling decades-high inflation, was "more vulnerable and of course more exposed on the energy front" as prices rise following the Russian invasion of Ukraine, she said.
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