G7 Reaches Agreement on Loan Support for Ukraine Using Russian Assets

Leaders of the Group of Seven (G7) major democracies have agreed to provide $50 billion in loans to Ukraine, utilizing interest from Russian sovereign assets frozen after Moscow’s 2022 invasion of Ukraine.

This political agreement was the focal point of the first day of the G7 annual summit in southern Italy, attended for the second consecutive year by Ukrainian President Volodymyr Zelenskiy.

During the summit, Zelenskiy announced a 10-year security accord with Japan, which includes a commitment of $4.5 billion in aid to Ukraine this year. He is also expected to sign a long-term security agreement with U.S. President Joe Biden later in the day.

According to a Reuters report, the G7 plan involves a multi-year loan scheme utilizing profits from approximately $300 billion of seized Russian funds. The technical specifics of the plan are set to be finalized in the coming weeks, with additional funding expected to be available by the end of the year, according to a G7 diplomatic source who requested anonymity.

A senior U.S. official indicated that the United States had pledged up to $50 billion, although this amount may be reduced as other nations contribute to the effort. The aim is to ensure the plan’s longevity regardless of changes in leadership within the G7 countries, addressing concerns that U.S. Republican presidential candidate Donald Trump might be less supportive of Ukraine if he wins the upcoming election.

Russia has denounced Western attempts to utilize its frozen assets, with foreign ministry spokeswoman Maria Zakharova labeling such actions as criminal and warning of severe repercussions for the European Union.

The funds provided to Ukraine will be allocated to various needs, including military, economic, humanitarian aid, and reconstruction efforts.

The G7 summit commenced on Thursday in Italy’s scenic Puglia region, where leaders held private discussions on topics such as the war in Gaza, support for Ukraine, and other shared concerns. President Biden arrived late on Wednesday.

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