WASHINGTON (AP) — Leaders of the Group of Seven wealthy democracies have agreed to engineer a $50 billion loan to help Ukraine in its fight for survival. Interest earned on profits from Russia’s frozen central bank assets would be used as collateral.
Leaders of the Group of Seven wealthy democracies have agreed to engineer a $50 billion loan to help Ukraine in its fight for survival. Interest earned on profits from Russia’s frozen central bank assets would be used as collateral.
Details of the deal were being hashed out by G7 leaders at their summit in Italy. The money could reach Kyiv before the end of the year, according to U.S. and French officials.
President Joe Biden told reporters at a news conference Thursday that the move was part of a “historic agreement.” Ukraine’s president, Volodymyr Zelenskyy, said providing a loan through Russia’s assets «is a vital step forward in providing sustainable support for Ukraine in winning this war.»
Here’s how the plan would work:
Most of the money would be in the form of a loan mostly guaranteed by the U.S. government, backed by profits being earned on roughly $260 billion in immobilized Russian assets. The vast majority of that money is held in European Union nations.
A French official said the loan could be “topped up” with European money or contributions from other countries. The White House said Canada will loan Ukraine up to $5 billion, while European countries have expressed interest in sending as much as half of the total package. Japan has also said it intends to help fund Ukraine — though its laws require the money to go to Ukraine’s budget, not its war effort.
A U.S. official who spoke on the condition of anonymity to preview the agreement said the G7 leaders’ official statement due out Friday will leave the door open to trying to confiscate the Russian assets entirely.
