Leaders of the Group of Seven (G7) have reached a consensus on a $50 billion aid package to support Ukraine, with funds backed by profits from Russian sovereign assets frozen after the 2022 invasion of Ukraine. Announced on Friday, this major financing decision aims to begin disbursement by the end of the year, directing resources toward Ukraine’s budgetary, military, and reconstruction efforts.
The G7 leaders confirmed their agreement on a comprehensive loan package to help stabilize and rebuild Ukraine. Finance ministers agreed upon a technical framework for consistent and fair distribution among G7 members, underlining a united front in support of Ukraine. “Our commitment to helping Ukraine remains unwavering,” read the G7 statement, adding that they are coordinating to ensure efficient and equitable lending.
Leaders announced the plan in Washington, D.C., where world financial leaders convened this week for meetings led by the International Monetary Fund (IMF) and the World Bank. US Treasury Secretary Janet Yellen and Ukrainian Finance Minister Sergii Marchenko solidified the agreement with a signed statement of intent, outlining their mutual resolve to aid Ukraine without burdening taxpayers.
The United States announced it would contribute $20 billion as part of the G7’s package, with funds backed by interest accrued on immobilized Russian assets. President Joe Biden assured that the loan’s repayment would rely on Russian-held assets rather than tax dollars. The United States intends to allocate at least half of its aid to economic recovery, with the rest likely designated for military support, pending Congressional authorization.
“Our message is clear: those who instigate conflict will face consequences for the damage inflicted,” Biden remarked, emphasizing that Washington remains steadfast in its support for Ukraine.
The remaining $30 billion will be financed by other G7 nations, including the European Union, United Kingdom, Canada, and Japan. This robust financial backing from G7 allies underscores a unified approach to addressing Ukraine’s urgent needs. In a closing statement, G7 leaders reiterated their commitment to supporting Ukraine, declaring that “time is not on President Putin’s side.”
This substantial commitment from the G7 represents a significant milestone in global efforts to support Ukraine’s recovery, both economically and militarily, as the country continues to face the challenges of rebuilding amid ongoing conflict.
