Explainer | How will G7 loan Ukraine US$50 billion using frozen Russian assets?
- The deal will give Kyiv a boost in the fight against Moscow’s invasion, but key questions still need to be resolved
The Group of Seven rich democracies have agreed to use proceeds from frozen Russian assets to give Ukraine US$50 billion in loans, aiming to ensure Kyiv can continue its fight against Russia’s invasion and to signal Western resolve to Moscow.
Leaders of the G7 – Britain, Canada, France, Germany, Italy, Japan and the United States – agreed to the plan on Thursday, along with top officials from the European Union, where most of the Russian assets frozen as a result of the war are held.
The deal capped months of intense negotiations, and came after Washington’s initial push to seize the assets themselves ran into strong opposition from European countries.
But officials say some key questions still need to be resolved, despite the agreement in principle by the leaders at a summit at the luxury Borgo Egnazia resort in southern Italy.
Why has the G7 adopted this plan?
The EU has already adopted a plan to skim the profits from the assets and use them to fund arms and other aid for Ukraine. But Washington pushed to “front load” the revenue from the assets by using them to give Ukraine a big lump sum now.
