G7 Pledges $50 Billion Loan to Ukraine from Frozen Russian Assets
In a significant move to support Ukraine in its fight against Russian forces, the G7 has agreed to use frozen Russian assets to raise $50 billion for the war-torn country. This decision was announced at the G7 summit in Italy, where Ukrainian President Volodymyr Zelensky and US President Joe Biden signed a 10-year bilateral security deal between Ukraine and the US.
G7 leaders at the summit in Italy
The security deal aims to build and maintain Ukraine’s defense and deterrence capability, bolster the country’s defense industrial base, and support economic recovery and energy security. In the event of a future Russian armed attack against Ukraine, the deal ensures consultation “at the highest levels to determine appropriate and necessary measures to support Ukraine and impose costs on Russia.”
The $50 billion loan is expected to be used to support Ukraine’s war effort and economy. The loan will be raised on the international markets, with the interest paid from the $3 billion generated annually from the frozen Russian assets.
Ukrainian President Volodymyr Zelensky and US President Joe Biden
US President Joe Biden emphasized that the loan would “put that money to work for Ukraine and send another reminder to [Russian President Vladimir] Putin that we’re not backing down.” He stressed that Putin “cannot wait us out, he cannot divide us, and we’ll be with Ukraine until they prevail in this war.”
President Zelensky thanked his American and other allies for their unwavering support, hailing the security deal as “historic.” The G7 group of rich nations has been a crucial financial and military supporter of Ukraine in its battle against Russian forces.
G7 leaders at the summit in Italy
The $50 billion loan is seen as a long-term solution to support Ukraine’s war effort and economy. The move is a significant step forward in the international community’s efforts to support Ukraine in its fight against Russian aggression.
Ukraine flag
The G7’s decision is a strong message to Russia that the international community will not back down in its support for Ukraine. As the war continues, the world watches with bated breath, hoping for a swift resolution to the conflict.
G7 leaders at the summit in Italy
