G7 leaders agree on $50 billion loan for Ukraine utilizing frozen Russian assets

G7 leaders agree on $50 billion loan for Ukraine utilizing frozen Russian assets

Shafaq News / Leaders of the Group of Seven (G7) nations have finalized an agreement during their summit in Italy to extend a substantial $50 billion loan to Ukraine, leveraging frozen Russian assets, a senior US official announced on Thursday.

The official, who spoke on condition of anonymity, disclosed, "We have achieved a high-level political understanding regarding this agreement. $50 billion will be allocated this year to support Ukraine."

Earlier in May, European Union member states had greenlit a plan to utilize returns from frozen Russian assets to bolster Ukraine's defense capabilities, potentially yielding between 2.5 to 3 billion euros annually.

The United States spearheaded efforts within the G7 to utilize returns on approximately 300 billion euros of frozen assets from the Russian central bank within EU and G7 jurisdictions to secure the substantial loan for Ukraine.

President Joe Biden is expected to formalize a bilateral security pact with Ukrainian President Volodymyr Zelenskiy in Italy later on Thursday.

Concurrently, British Prime Minister Rishi Sunak is set to announce additional aid to Kyiv amounting to 242 million pounds ($286 million).

The United States recently unveiled a comprehensive package of sanctions aimed at impeding Russian military activities in Ukraine by intensifying pressure on international banks engaged in transactions with Russia. In response, Moscow has pledged retaliatory measures.

The sanctions imposed by the US Treasury and State Department target over 300 entities, including entities in Russia as well as in countries such as China, Turkiye, and the United Arab Emirates.

Russian Foreign Ministry spokesperson Maria Zakharova, quoted by the TASS news agency, affirmed that "Russia will not leave hostile actions by the United States unanswered."

Leaders of the G7 industrialized nations, including Germany, Canada, France, Italy, Japan, and the United Kingdom, are convening in Polignano a Mare, southern Italy, from Thursday to Saturday, with several guest attendees, notably including Ukrainian President Volodymyr Zelenskiy.

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