U.S. Treasury's Yellen calls on allies to increase financial aid to Ukraine

U.S. Treasury Secretary Janet Yellen called for U.S. allies to increase financial support to Ukraine on Tuesday, saying that funds announced so far would not be sufficient for the country's short-term needs as it battles a Russian invasion.

"Ukraine's funding needs are significant," Yellen said in remarks prepared for delivery to the Brussels Economic Forum, adding that the country's government continued to function, due to the ingenuity and bravery of its officials, Reuters reports.

"In the months until tax collection resumes, Ukraine needs budget funding to pay soldiers, employees and pensioners and to run an economy that meets the basic needs of its citizens," Yellen said. "The government will soon need to address repairs and rebuild critical utilities."

While Ukraine will eventually need "massive support" for reconstruction and recovery on the scale of the Marshall Plan for post-World War II Europe, the country will have to do it "step by step."

"It is clear that the bilateral and multilateral support announced so far will not be sufficient to meet Ukraine's basic needs," Yellen said.

According to statements by President of Ukraine Volodymyr Zelenskyy and the International Monetary Fund, due to the fact that the war has halted almost half of the Ukrainian economy, the country needs short-term external financing in the amount of about $5 billion per month to meet basic needs.

On Wednesday, the European Union intends to offer Ukraine a new package of loans to provide immediate liquidity, along with commitments to long-term recovery. While the short-term package is still being determined, two officials familiar with the discussions told Reuters they expect it will roughly cover Ukraine's financial needs for two months.

Yellen urged allies to "join in increasing their financial support for Ukraine" as the U.S. Senate moves closer to passing a $40 billion spending package for military and humanitarian aid.