KONIGSWINTER Germany (Reuters) – G7 financial executives will likely focus on Thursday or Friday on ways to assist Ukraine with its debts. The agenda includes reconstruction following the conflict, rising global inflation, climate change, and supply chains.

The G7 will host talks between finance ministers and central banks governors from the United States of America, Japan, Canada and Britain. This is as Ukraine has been invaded by Russia since February 24th.

Because the Ukraine conflict is forcing Western countries to reconsider decades-old relationships with Russia, it has profound implications for their security as well as in regard to energy, food, and global supply alliances, ranging from rare earths to microchips.

These meetings are being overshadowed by Ukraine. However, there are many other matters that need to be addressed,” said a G7 official who requested anonymity. He added that global debt, international taxes, climate change, and global health all deserve discussion.

Ukraine projects its monthly financial need at $5Billion to maintain public employee salaries and administration functioning despite Russia’s constant destruction.

Russia calls its actions in Ukraine a “special operation” that it says is not designed to occupy territory but to destroy its southern neighbour’s military capabilities and capture what it regards as dangerous nationalists.

G7 agreed to finance three months’ worth of Ukraine’s short-term needs.

On Wednesday, the European Commission proposed to loan Ukraine up to 9 Billion Euros ($9.44Billion). This was financed using EU borrowing guarantee by EU governments to pay for Kyiv’s expenses until June.

Also, the Commission proposed that a fund with an unspecified amount of loans and grants for Ukraine be established, which could possibly be jointly borrowed from the EU to help pay for reconstruction after war has ended.

Economists have estimated that the project would require a financial investment of 500 billion to 2 trillion euros, or $524 billion to $2.09 Trillion. However, estimates can change depending on how long the conflict is and what the extent of damage.

As such, the EU will be looking at new sources of funding, not just a joint borrowing program based on the pandemic recovery funds, but also confiscation of any Russian assets that are currently frozen in Europe.

However, some countries, such as Germany, believe that this idea is not only politically appealing but also has weak legal foundations.

Officials from the United States stress that it’s too early to plan financing for an extensive rebuilding program for Ukraine. Washington desires that discussions focus on Kyiv’s immediate financial needs for the next three-months.

According to a U.S. Treasury official, “These rebuilding costs are not very far off in the near future.” This is why we are focusing more on Ukraine’s budget in the next three month than reconstruction, Marshall Plans or asset confiscation.

($1 = 0.9550 euro)