The leaders of the Group of Seven (G7) nations agreed to a deal Thursday to give Ukraine $50 billion in loans backed by frozen Russian central bank assets, signaling continued support for Kyiv as Russia’s invasion shows no signs of abating.
The leaders of the G7 have gathered in Italy for their annual conference where the Ukraine war ... [+]
According to the Associated Press, the money lent to Ukraine will be repaid using the profits generated from the estimated $280 billion worth of frozen Russian central bank assets, the majority of which is held in the European Union.
The loans will be provided separately by the U.S., European Union and other G7 members using their own procedures, although an unnamed French official cited by AP said most of it will come from the U.S.
The loans are a workaround to allow the use of Russian assets to fund Ukraine as the process of simply confiscating the money and handing it to Kyiv may face legal hurdles.
The loan will help Ukraine cover its financial needs until 2025 and beyond, Bloomberg reported.
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$3.2 billion to $5.4 billion (€3 billion to €5 billion). That is the estimated “windfall profits” Russia’s frozen assets generate each year in Europe, according to the EU.
Speaking to reporters on board Air Force One on Wednesday night, National Security Advisor Jake Sullivan discussed support for Ukraine, saying: “We want to demonstrate that the U.S. supports the people of Ukraine…By signing this, we’ll also be sending Russia a signal of our resolve…If Vladimir Putin thinks that he can outlast the coalition supporting Ukraine, he’s wrong.”