G7 Leaders Agree to Release Russian Assets for Ukraine
The leaders agreed to provide a $50 billion loan to Ukraine backed by profits on frozen Russian assets.
During the G7 summit in PUGLIA, Italy, leaders reached an agreement on June 13 to use frozen Russian assets to support Ukraine in the ongoing conflict.
Ukraine will receive a loan with frozen Russian assets serving as collateral, with the United States committing $50 billion. The distribution of risk will be shared among G7 nations.
Senior Biden administration officials stated that the loan will commence this year, ensuring that Russia bears the cost rather than taxpayers in the United States and G7 countries.
One senior administration official commented, “Russia pays. The income generated will come from the interest on the immobilized assets, providing a fair repayment method. The principal amount remains intact, but the option exists to seize it later if needed.”
Ukrainian President Volodymyr Zelenskyy expressed optimism on X that the asset agreement would be finalized on Thursday.
“The G7’s unwavering support for Ukraine is evident to our entire nation, including our soldiers,” he wrote. “We appreciate our partners’ belief in our victory.”
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Prior to the summit, G7 finance ministers deliberated on the legality of using approximately $300 billion in frozen assets held in European accounts as security for a loan to aid Ukraine’s reconstruction. France was reportedly reluctant to endorse the plan.
President Biden confirmed a pact with Mr. Macron to utilize the frozen Russian assets before departing France last week.
Subsequent to his meetings with G7 leaders on June 13, President Biden is expected to finalize a 10-year bilateral security agreement with Mr. Zelenskyy, demonstrating ongoing U.S. support for Ukraine against Russian aggression.
The Associated Press contributed to this report.
This is a developing story and will be updated.
