The Group of Seven (G7) leaders have confirmed a $50 billion loan package aimed at supporting Ukraine, funded by profits from Russian sovereign assets that have been frozen since the invasion. A statement released on Friday announced that G7 leaders have reached a consensus on how to deliver these loans, with plans to start disbursing funds by the end of the year.
According to the G7, the loan proceeds will be distributed through various channels to assist Ukraine’s budgetary needs, military efforts, and reconstruction initiatives. This announcement coincided with meetings held by world financial leaders in Washington, organized by the International Monetary Fund (IMF) and World Bank.
The finance ministers from the G7 countries have agreed on a technical solution to ensure coordinated, equitable lending, and solidarity among all partners. “We will not tire in our resolve to give Ukraine the support it needs to prevail,” the leaders stated, urging Moscow to end its conflict and compensate Ukraine for the damages incurred.
As part of the G7 package, US President Joe Biden announced that the United States would contribute $20 billion in loans to Ukraine, which will be repaid using the interest generated from immobilized Russian sovereign assets. This approach aims to provide immediate support to Ukraine without placing additional financial burdens on US taxpayers. “Our efforts make it clear: tyrants will be responsible for the damages they cause,” Biden emphasized.
US Treasury Secretary Janet Yellen and Ukrainian Finance Minister Sergii Marchenko signed a statement to formalize their commitment to the loan. While Washington plans to allocate at least $10 billion for economic assistance, the remaining amount will be directed towards military support, pending Congressional approval.
The additional $30 billion will come from various G7 partners, including the European Union (EU), the United Kingdom, Canada, and Japan. The EU has frozen approximately $235 billion of Russian central bank funds, and plans to contribute around €18 billion ($19.4 billion) to the loan package. EU chief Ursula von der Leyen reiterated the bloc’s position, stating, “Russia must end its illegal war of aggression and pay for the damage it has caused,” affirming solidarity with Ukraine.
Delays in implementing the G7 loan were attributed to the US seeking assurances from the EU regarding the continued freezing of Russian assets. The G7 statement emphasized their commitment to support Ukraine, noting, “Time is not on President (Vladimir) Putin’s side.”
