Leaders of the Group of Seven have finalized a deal to use the profits of frozen Russian assets for a $50 billion loan to Ukraine, the G7 said on Friday.
“These loans will be serviced and repaid by future flows of extraordinary revenues stemming from the immobilization of Russian sovereign assets, in line with G7 respective legal systems and international law,” the group said in a statement on the heels of a meeting of G7 finance ministers in Washington.
Leaders aim to start disbursing the funds by the end of the year.
The loan would be repaid entirely using the windfall profits generated by more than $250 billion of Russian assets that were immobilized across Western countries after Moscow’s invasion of Ukraine in February 2022.
Washington announced on Wednesday that it would contribute $20 billion to the loan during December, in a bid to shield its contribution from the fallout of the U.S. election. Donald Trump has previously questioned Washington’s support to Ukraine should he return to the While House.
The agreement comes after the U.S. previously said that it wouldn’t be able to give a substantial amount unless the EU changed its rules governing sanctions.
The EU, which is holding most of the frozen funds, pledged to give up to €35 billion to Ukraine. In the end, the bloc is expected to also allocate $20 billion. The remaining $10 billion will be split among the U.K., Canada and Japan.
A statement from G7 ministers said that the funds would be allocated through bilateral loans, starting as soon as Dec. 1, until the end of 2027. “Each bilateral loan will enter into force no later than 30 June 2025,” which should “reflect Ukraine’s urgent financing needs,” according to the statement.
The EU finalized its fast-track process for its own contribution to the loan this week.
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