G7 Agrees on $50B Loan for Ukraine Using Frozen Russian Assets

The Group of Seven (G7) leaders have publicly confirmed an agreement to provide Ukraine with a $50 billion loan by the end of the year, with repayment expected from the interest generated by approximately $300 billion in frozen Russian assets. The loan agreement, months in the making and following intense negotiations between European and Washington officials, aims to bolster Ukraine’s financial resilience in the face of Russian aggression.

Italian Prime Minister Giorgia Meloni confirmed the political agreement, highlighting that the funds for Ukraine will be sourced from profits generated by the frozen Russian assets over time. While the loan mechanism is designed to provide immediate support to Ukraine, President Volodymyr Zelenskyy also urged G7 leaders to consider a mechanism for the full confiscation of the $300 billion in frozen Russian funds. Technical details of the plan, including the establishment of a fund under an international organization such as the World Bank and the utilization of “Extraordinary Revenue Acceleration” (ERA) loans, are expected to be finalized in the coming weeks, as reported by Reuters.