Finance Minister Clyde Caruana said on Monday that the government is using the €200 million budget aid to reduce costs caused by the Russia and Ukraine conflict. 

In the 2022 Budget, the government had set aside a sum of money which would allow Malta to address any possible impact on price increases. This amount adds up to around €200 million or to 1.4% of the gross domestic product.   

In a video posted on Facebook, Minister Caruana spoke on the impact that the conflict between Ukraine and Russia will have on Malta, saying that although this attack has increased prices in products such as oil, wheat and grain, the government is taking action on reducing these prices. 

Caruana said that over the past week, during the election campaign, the discussion about the Russian attack on the people of Ukraine dominated every other topic in the second and eighth districts. 

“Many people expressed their regret and sadness for the suffering of the Ukrainain people as they are taking refuge to other countries. People also expressed their concern about how all this will affect Malta,” Caruana said. 

He added that products are on the rise because Ukraine and Russia are among the two largest suppliers in Europe when it comes to these products, and when there is a war, prices automatically increase. 

Caruana explained the price situation by providing concrete examples on fuel. 

“If the government did not intervene, everyone who currently owns a petrol car, would end up paying an additional €5 per week to the €20 that people already pay, whilst people who own a diesel car, would end up paying an additional €6 per week to the €20,” Caruana said.  

Caruana also confirmed that the public will be receiving their cheques soon. 

“This measure will help people meet the cost of living. If the need arises, the government will not hesitate to implement this measure again,” Caruana said. 

He encouraged people to vote and continue showing their confidence in the Labour Party on 26 March.