G7 will launch Extraordinary Revenue Acceleration (ERA) Loans for Ukraine, in order to make available approximately USD 50 billion in additional funding to Ukraine by the end of the year; G7 remain committed to strengthening the rules-based multilateral trading system; fostering strong and inclusive global economic growth, maintaining financial stability and investing in its economies to promote jobs and accelerate digital and clean energy transitions
FinTech BizNews Service
Mumbai, June 15, 2024: The Leaders of the Group of Seven (G7), gathered in Apulia, Italy to reaffirm their enduring unity and determination to meet global challenges at a crucial moment in history and as the international community confronts multiple interconnected crises.
Apulia G7 Leaders’ Communiqué:
We reiterate our shared belief in democratic principles and free societies, universal human rights, social progress, and respect for multilateralism and the rule of law. We commit to providing opportunities and pursuing shared prosperity. We seek to strengthen international rules and norms for the benefit of all. Our work is grounded in our commitment to respect the UN Charter, safeguard international peace and security, and uphold the free and open rules-based international order. We will support more effective, inclusive and equitable global governance that reflects our changing world. We reaffirm our commitment to uphold human dignity and the rule of law in all parts of the world.
We are working together and with others to address the pressing challenges of our time. We are:
• Standing in solidarity to support Ukraine’s fight for freedom and its reconstruction for as long as it takes. In the presence of President Zelenskyy, we decided to make available approximately USD 50 billion leveraging the extraordinary revenues of the immobilized Russian sovereign assets, sending an unmistakable signal to President Putin. We are stepping up our collective efforts to disarm and defund Russia’s military industrial complex.
• United in supporting the comprehensive deal that has been put forward, that would lead to an immediate ceasefire in Gaza, the release of all hostages, and a credible pathway towards peace that leads to a two-state solution. We also call for a significant and sustained increase in humanitarian assistance.
• Engaging with African countries, in a spirit of equitable and strategic partnership. As they work to deliver sustainable development and industrial growth for their people, we are advancing our respective efforts to invest in sustainable infrastructure, including through the PGII, and we launched the Energy for Growth in Africa initiative, together with several African partners.
• Acting to enable countries to invest in their future and achieve the Sustainable Development Goals (SDGs), recognizing that reducing poverty and tackling global challenges go hand in hand. We are doing our part to achieve better, bigger and more effective Multilateral Development Banks, making it possible for the World Bank to boost its lending by USD 70 billion over the next ten years. We are calling for action from the international community to address debt burdens. • Reinforcing global food security and enhancing climate resilience, including by launching the Apulia Food Systems Initiative.
• Reaffirming our commitment to gender equality. Together with International Financial Institutions, we will unlock at least USD 20 billion over three years in investments to boost women’s empowerment.
• Taking concrete steps to address the triple crisis of climate change, pollution, and biodiversity loss, including by submitting ambitious 1.5°C aligned Nationally Determined Contributions. We will spearhead global efforts to preserve forests and oceans, and to end plastic pollution.
• Affirming our collective commitment and enhanced cooperation to address migration, tackle the challenges and seize the opportunities that it presents, in partnership with countries of origin and transit. We will focus on the root causes of irregular migration, efforts to enhance border management and curb transnational organized crime, and safe and regular pathways for migration. We launched the G7 Coalition to prevent and counter the smuggling of migrants.
• Deepening our cooperation to harness the benefits and manage the risks of Artificial Intelligence (AI). We will launch an action plan on the use of AI in the world of work and develop a brand to support the implementation of the International Code of Conduct for Organizations Developing Advanced AI Systems.
• Fostering strong and inclusive global economic growth, maintaining financial stability and investing in our economies to promote jobs and accelerate digital and clean energy transitions. We also remain committed to strengthening the rules-based multilateral trading system and to implementing a more stable and fairer international tax system fit for the 21st century.
• Acting together to promote economic resilience, confront non-market policies and practices that undermine the level playing field and our economic security, and strengthen our coordination to address global overcapacity challenges. In taking forward all these priorities, our partnership in the G7 will continue to be guided by our joint commitment to cooperate openly and transparently in a coordinated manner. We are grateful for the presence of His Holiness Pope Francis and for his contribution. In a spirit of shared responsibility, we warmly welcome the participation of the Leaders of Algeria, Argentina, Brazil, India, Jordan, Kenya, Mauritania, Tunisia, Türkiye, and the United Arab Emirates.
Steadfast support to Ukraine
We reaffirm our unwavering support for Ukraine for as long as it takes. Together with international partners, we are determined to continue to provide military, budget, humanitarian, and reconstruction support to Ukraine and its people. We remain strongly committed to helping Ukraine meet its urgent short-term financing needs, as well as supporting its long-term recovery and reconstruction priorities. Russia must end its illegal war of aggression and pay for the damage it has caused to Ukraine. These damages now exceed USD 486 billion, according to the World Bank. It is not right for Russia to decide if or when it will pay for the damage it has caused in Ukraine. Russia’s obligations under international law to pay for the damage it is causing are clear, and so we are continuing to consider all possible lawful avenues by which Russia is made to meet those obligations. We remain determined to dispel any false notion that time is on Russia’s side, that destroying infrastructure and livelihoods has no consequences for Russia, or that Russia can prevail by causing Ukraine to fail economically.
With a view to supporting Ukraine’s current and future needs in the face of a prolonged defense against Russia, the G7 will launch Extraordinary Revenue Acceleration (ERA) Loans for Ukraine, in order to make available approximately USD 50 billion in additional funding to Ukraine by the end of the year. Therefore, without prejudice to possible other contributions and standing together, the G7 intends to provide financing that will be serviced and repaid by future flows of extraordinary revenues stemming from the immobilization of Russian sovereign assets held in the European Union and other relevant jurisdictions. To enable this, we will work to obtain approval in these jurisdictions to use future flows of these extraordinary revenues to service and repay the loans. We confirm that, consistent with all applicable laws and our respective legal systems, Russia’s sovereign assets in our jurisdictions will remain immobilized until Russia ends its aggression and pays for the damage it has caused to Ukraine. We will maintain solidarity in our commitment to providing this support to Ukraine. We intend to disburse this financing through multiple channels that direct the funds to Ukraine’s military, budget, and reconstruction needs – within the constraints of our respective legal systems and administrative requirements. As it relates to reconstruction, we will also strengthen the Multiagency Donor Coordination Platform for Ukraine to help coordinate the disbursal of funds and ensure they align with Ukraine’s highest priority needs at a pace it can effectively absorb.
Freedom of Navigation in the Red Sea
We condemn the ongoing attacks perpetrated by the Houthis against international and commercial vessels transiting through the Red Sea and Gulf of Aden. These illegal attacks must end. We call for the immediate release by the Houthis of the Galaxy Leader and its crew. We reiterate the right of countries to defend their vessels, in line with UNSCR 2722 and in accordance with international law. The EU maritime operation Aspides and the U.S.-led operation Prosperity Guardian play an essential role to protect crucial shipping lanes that are fundamental for global trade. Maritime security and navigational rights and freedoms are critical to ensuring free movement of essential commodities to destinations and populations all over the world. This includes delivery of life-saving humanitarian assistance to more than half the population of Yemen. The continuing Houthi attacks in the Red Sea risk destabilizing the region, stopping freedom of navigation and trade flows and endangering the UN-led roadmap towards peace in Yemen. We call on the Houthis to comply with their obligations under international humanitarian law and cease their attacks in the Red Sea, Gulf of Aden and surrounding waters. We further call on Yemeni parties to continue their positive efforts in furtherance of the understanding reached in December 2023, under UN auspices, regarding the peace process.
Fostering partnerships with African countries
We are committed to stepping up our support to African countries in their efforts to achieve sustainable development and local value creation, strengthen democratic governance, contribute to global stability and prosperity, and protect the rule-based international order. In doing so, we remain focused on equitable partnerships rooted in shared principles, democratic values, local ownership, and concrete initiatives. We will align our efforts with the African Union Agenda 2063 and African countries’ needs and priorities, including the integrated African continental plans for improved local and regional food security, infrastructure, trade and agricultural productivity. We will also support the operationalization of the African Continental Free Trade Area which will be an essential parameter of African growth in the coming decade.
We are launching the G7 Apulia Food Systems Initiative (AFSI) to intensify our efforts to overcome structural barriers to food security and nutrition and to build resilient sustainable and productive agriculture and food systems, and to ensure that all people can progressively realize the right to adequate food. This includes enhancing sustainability and productivity of local, regional, and global supply chains and addressing discriminatory rules and norms that affect gender equality. This initiative will leverage multi-stakeholder partnerships to advance ambitious programs on the ground and harness the full potential of food systems. Noting global food supply disruptions due to climate change and that the Paris Agreement can only be reached by transforming food systems, we will support synergetic and coherent policies and investments to address the climate-food systems nexus, particularly in low-income countries. We will contribute to these efforts globally, with a special attention to implementing and aligning with the African continental plans by supporting the following multi-stakeholder programs developed with the African Union and other global partners.
We will further promote concrete G7 PGII initiatives, flagship projects, and complementary initiatives to develop transformative economic corridors for quality infrastructure and investment, such as the deepening of our coordination and financing for the Lobito Corridor, the Luzon Corridor, the Middle Corridor, and the India-Middle East-Europe Economic Corridor, also building on the EU Global Gateway, the Great Green Wall Initiative, and the Mattei Plan for Africa launched by Italy. Indo-Pacific We reiterate our commitment to a free and open Indo-Pacific, based on the rule of law, which is inclusive, prosperous, and secure, grounded on sovereignty, territorial integrity, peaceful resolution of disputes, fundamental freedoms, and human rights.
We seek constructive and stable relations with China and recognize the importance of direct and candid engagement to express concerns and manage differences. We act in our national interest. Given China’s role in the international community, cooperation is necessary to address global challenges, and we continue to engage in areas of common interest. We call on China to step up efforts to promote international peace and security, and to work with us to tackle the climate, biodiversity, and pollution crises, combat illicit synthetic drug trafficking, ensure global macroeconomic stability, support global health security, and address vulnerable countries’ debt sustainability and financing needs. We recognize the importance of China in global trade. We are committed to advancing free and fair trade, a level playing field, and balanced economic relations, while updating and strengthening the multilateral rule-based trading system with the WTO at its core. We are not trying to harm China or thwart its economic development, indeed a growing China that plays by international rules and norms would be of global interest. However, we express our concerns about China’s persistent industrial targeting and comprehensive non-market policies and practices that are leading to global spillovers, market distortions and harmful overcapacity in a growing range of sectors, undermining our workers, industries, and economic resilience and security. We are not decoupling or turning inwards. We are de-risking and diversifying supply chains where necessary and appropriate, and fostering resilience to economic coercion. We further call on China to refrain from adopting export control measures, particularly on critical minerals, that could lead to significant global supply chain disruptions. With these concerns in mind, together with partners, we will invest in building our and their respective industrial capacities, promote diversified and resilient supply chains, and reduce critical dependencies and vulnerabilities. We will strengthen diplomatic efforts and international cooperation, including in the WTO, to encourage fair practices and build resilience to economic coercion. We will continue to take actions, as necessary and appropriate, to protect our workers and businesses from unfair practices, to level the playing field and remedy ongoing harm.
We call on China to uphold its commitment to act responsibly in cyberspace. We will continue our efforts to disrupt and deter persistent, malicious cyber activity stemming from China, which threatens our citizens’ safety and privacy, undermines innovation, and puts our critical infrastructure at risk. We recognize the necessity of protecting certain advanced technologies that can be used to threaten our national security, without unduly limiting trade and investment. We reaffirm that maintaining peace and stability across the Taiwan Strait is indispensable to international security and prosperity. We support Taiwan's meaningful participation in international organizations, including in the World Health Assembly and WHO technical meetings, as a member where statehood is not a prerequisite and as an observer or guest where it is. There is no change in the basic positions of the G7 members on Taiwan, including stated one China policies. We call for a peaceful resolution of cross-Strait issues. We remain seriously concerned about the situation in the East and South China Seas and reiterate our strong opposition to any unilateral attempt to change the status quo by force or coercion. We continue opposing China’s dangerous use of coast guard and maritime militia in the South China Sea and its repeated obstruction of countries’ high seas freedom of navigation.
