Group of Seven (G7) leaders on June 13 publicly confirmed an agreement on a plan to provide Ukraine with a $50 billion loan by the end of the year. The loan should be repaid using interest from some $300 billion in frozen Russian assets.
“We have reached a political agreement to provide additional financial support to Ukraine of approximately $50 billion by the end of the year,” said the summit host, Italian Prime Minister Giorgia Meloni.
The announcement came as the G7 leaders met at the luxury resort of Borgo Egnazia in Puglia, Italy, on the first day of their summit.
“With a view to supporting Ukraine’s current and future needs in the face of a prolonged defence against Russia, the G7 will launch Extraordinary Revenue Acceleration (ERA) Loans for Ukraine, in order to make available approximately USD 50 billion in additional funding to Ukraine by the end of the year,” it is said in the communiqué.
These loans will be paid back with extraordinary revenues from frozen Russian government assets in the European Union and other countries. The Group of Seven confirmed that Russia’s assets would be frozen until it stopped its war of aggression and compensated Ukraine for all the losses.
G7 funding will be directed to “Ukraine’s military, budget, and reconstruction needs” and this process will be coordinated by the Multi-agency Donor Coordination Platform.
“In light of the above, we task our relevant Ministers and officials to operationalize these commitments in time for ERA to begin disbursing before year-end,” the G7 communiqué concludes.