G7 leaders have agreed to provide Ukraine with a loan using frozen Russian assets as collateral. The total sum is still uncertain, but the United States has pledged $50 billion towards this initiative. The risk will be shared among the other G7 nations.
The loan, set to commence this year, will utilize the interest generated from the immobilized assets to repay Russia. This ensures that Russia bears the cost of the loan rather than taxpayers in the United States and other G7 countries.
President Volodymyr Zelenskyy of Ukraine expressed optimism that the asset deal would be finalized soon, emphasizing the unwavering support of the G7 for Ukraine’s cause.
Prior to the summit, G7 finance ministers deliberated on the legality of using approximately $300 billion in frozen assets held in European accounts as collateral for a loan to aid Ukraine in its reconstruction efforts. France initially had reservations about the proposal.
President Biden had previously announced an agreement with President Macron of France to utilize the frozen Russian assets for this purpose.
Following his discussions with G7 leaders on June 13, President Biden will formalize a 10-year bilateral security agreement with President Zelenskyy, reaffirming the United States’ commitment to stand by Ukraine in the face of Russian aggression.
Source: The Associated Press
This information is developing and will be updated accordingly.
