Global civil society coalition demands G7 leaders to prioritise support for Ukraine at upcoming meeting

G7’s financial support for Ukraine dwindles compared to the inflow to Russia’s war chest from ongoing exports of fossil fuels. It is paramount to now entirely end the financing of the Russian war machine through fossil fuel imports, close all sanction loopholes and support building Ukraine back with cleaner energy solutions. 

The coalition, consisting of Razom We Stand, CEE Bankwatch, Ecoaction, Centre for Research on Energy and Clean Air, and the International Centre for Ukrainian Victory, has outlined three key priorities for the G7 meeting:

• Closing Fossil Fuel Sanction Loopholes: Russia’s total revenues from fossil fuel exports since 23 February 2022 have already surpassed EUR 600 bn. Italy alone has handed over EUR 18 bn. This figure translates to the equivalent of every EU citizen personally handing over approximately EUR 420 to the Kremlin to fund war crimes in Ukraine since the beginning of the invasion, more than double the amount of financial support the EU has sent to Ukraine. The coalition emphasises the importance of tightening sanctions on Russian fossil fuel exports to minimise revenues that fund the ongoing war in Ukraine. Despite existing bans on imports of coal, crude oil, and oil products, loopholes persist, allowing Russia to generate substantial revenues that fund their constant attacks on innocent Ukrainians. The coalition calls for enhanced enforcement measures, including immediate sanctions on vessels violating price caps, bans on the transshipment of Russian LNG in EU ports, and prohibitions on importing oil products from Russian crude.
• Confiscation of Russian Frozen Assets: The coalition urges G7 nations to confiscate Russian sovereign assets frozen in G7 and EU states, totalling nearly USD 300 billion. These assets, primarily held in Belgium and other EU member states, represent a critical source of sustainable support for Ukraine’s reconstruction efforts. Considering the existing difficulties of foreign aid for Ukraine, frozen Russian assets may serve as an optimal alternative source of support for rebuilding bombed energy infrastructure with resilient clean energy, and compensation for losses suffered by Ukraine and the Ukrainian people, officially estimated at USD 486 bn for two years of the full-scale war. The coalition stresses the legality and proportionality of confiscating these assets as a countermeasure against Russia’s aggression and emphasises the need for safeguards to ensure funds benefit Ukraine.
• Supporting Building Ukraine Back Better: Currently, Ukraine’s Soviet-era centralised energy system is in a very fragile state, with 50 per cent of its infrastructure damaged by rocket and drone attacks. Recognising the urgent need for reconstruction in Ukraine, particularly in the wake of extensive damage to energy infrastructure, the coalition calls for increased support for sustainable, decentralised, energy-efficient, renewable energy projects. These projects not only enhance energy security and resilience but also contribute to European climate goals and create high-quality jobs. The coalition urges international donors to allocate funding directly to municipalities to implement local reconstruction initiatives, as only a very small portion of the global funds reaches municipalities. All G7 and member countries of the Multi-agency Donor Coordination Platform for Ukraine should align their approaches following EU’s Ukraine Facility green financing 20 per cent target, supporting sustainable and local renewable projects that will serve Ukrainians for decades.

Addressing these priorities is crucial for demonstrating tangible support for Ukraine and advancing efforts to rebuild the country with clean energy in the aftermath of the war. By prioritising these issues at the 2024 G7 Foreign Affairs Ministerial, G7 nations can send a powerful message of solidarity with Ukraine and contribute to long-term stability and prosperity in the region.

Svitlana Romanko, Founder and Director of Razom We Stand, said: ‘The devastating impact of Russia’s deliberate attacks on Ukraine’s energy infrastructure highlights the pressing need for collaborative efforts and investment in renewable energy technologies to replace fossil fuels. G7 nations must reaffirm their commitment to supporting Ukraine in its time of desperate need. Supporting Russian sales of fossil fuels not only funds the Kremlin’s war machine but directly leads to the death of innocent Ukrainians. By closing fossil fuel sanction loopholes, confiscating Russian frozen assets, and prioritising sustainable reconstruction efforts, G7 countries can demonstrate their solidarity with Ukraine, save thousands of lives in the process and contribute to its long-term recovery and resilience.’

Kostiantyn Krynytskyi, Head of Energy Department at Ecoaction, said: ‘The latest wave of Russian attacks on Ukrainian TPPs and their partial or complete destruction in March and April 2024 scream that Russia still has an abundance of financial resources to not only continue but to constantly escalate the war. Financial resources that are being replenished by the revenues from the fossil fuel exports that are still going strong. The leaking ship of sanctions, full of loopholes, needs to be fixed and additional measures installed. Otherwise, the world is failing Ukraine while Ukraine is defending the world.’

Isaac Levi, Europe-Russia Policy & Energy Analysis Team Lead at The Centre for Research on Energy and Clean Air (CREA), said: ‘There is a lack of urgency from the EU to fully end its reliance on Russian fossil fuels, with every day that policy makers wait, suffering continues in Ukraine. The existing sanctions have cut Russian fossil fuel export revenues by 12 per cent but further measures could slash their earnings by an additional 32 per cent. Without the EU fully banning Russian LNG, pipeline oil and gas, closing the refining loophole and tightening the price cap policy, Ukraine’s allies will continue to hand over money to fuel the Kremlin’s war chest.’

Vladlena Martsynkevych, Project Leader at CEE Bankwatch Network, said: ‘Ukraine is trying to maintain economic fluidity at the national level. But the majority of reconstruction efforts are taking place at the local level, with only a fraction of funds trickling down to municipalities. We need new financing methods that support sustainable reconstruction efforts and meet the needs of communities. The Ukraine Facility has pledged at least 20 per cent of its grants to support the country’s regional and municipal recovery efforts and those can help finance climate and environmental measures. This welcome development should inspire other donors and international finance institutions to follow suit.’

Olena Halushka, Co-founder of the International Center for Ukrainian Victory (ICUV) and a board member at the Anti-Corruption Action Center, said: ‘Russia’s daily terror in Ukraine’s territory threatens to escalate into a humanitarian disaster. While preventing the worst-case scenario is still possible, immediate action is essential. Urgently needed air defense systems, missiles, ammunition, and fighter jets. Currently, at least 5 million Ukrainians lost their homes. We are not seeking reconstruction aid for our homes now, as they may be destroyed by Russians tomorrow. Our immediate request is the same as at the beginning of a full-scale invasion – help us close the sky. By confiscating the USD 300 billion in frozen Russian assets held in Western countries, it would be possible to procure 120 Patriot air defense systems. Russia must be held accountable for its actions, and we urge you to Make Russia Pay.’

For media inquiries or further information, please contact:
Paraic Walker – press@razomwestand.org
International Communications Specialist, Razom We Stand

Vladlena Martsynkevych – vladlena@bankwatch.org
Ukraine Reconstruction Office, CEE Bankwatch Network