The Group of Seven leaders have recently agreed on a $50 billion loan to support Kyiv, utilizing profits from frozen Russian sovereign assets following the invasion of Ukraine. The loan will be allocated to aid Ukraine’s budget, military, and reconstruction efforts. The G7 leaders aim to start distributing the funds by the end of the year.
This decision was announced during meetings hosted by the International Monetary Fund and World Bank in Washington. Finance ministers from the G7 countries have ensured a coordinated approach to lending, emphasizing solidarity among the partners.
In a separate development, the United States pledged $20 billion in loans to Ukraine, with repayment expected from the interest earned on immobilized Russian assets. This move is designed to provide immediate support to Ukraine without burdening taxpayers. US Treasury Secretary Janet Yellen signed an agreement with her Ukrainian counterpart to formalize the loan arrangement.
The allocation of funds will see at least $10 billion directed towards economic assistance, while the remaining portion will be earmarked for military aid, pending approval from Congress. The $30 billion balance of the loans will be contributed by other G7 members, including the European Union, the United Kingdom, Canada, and Japan.
The EU has committed approximately €18 billion to the cause, emphasizing the need for Russia to end its aggression and take responsibility for the damage inflicted on Ukraine. Delays in the implementation of the loan were due to the US seeking assurances from the EU regarding the continued freezing of Russian assets.
Overall, the G7 leaders remain steadfast in their support for Ukraine and their stance against Russian aggression, highlighting the urgency of the situation.