G7 Ukraine loan/ frozen Russian assets/ U.S. military aid/ Ukraine financial aid/ Russian central bank funds/ G7 support for Ukraine/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The G7 is advancing a $50 billion loan for Ukraine, using frozen Russian central bank assets as collateral. The U.S. plans to contribute $20 billion, with the remaining $30 billion coming from other G7 nations. This unprecedented move will require U.S. congressional approval for military aid.
G7 Advances $50 Billion Ukraine Loan Backed by Frozen Russian Funds – Quick Look
- G7 allies are moving forward with a $50 billion loan for Ukraine, backed by Russian central bank assets.
- The U.S. will provide $20 billion, while other G7 members, including the EU and UK, will supply $30 billion.
- Interest earned on the frozen Russian funds will be used as collateral for the loan.
- The U.S. portion will be split between economic and military aid, pending congressional approval.
- This historic move follows debates on the legality of using frozen Russian assets.
G7 Allies Approve $50 Billion Ukraine Loan Using Frozen Russian Funds
Deep Look
The Group of Seven (G7) allies, which include the U.S., European Union, UK, Canada, and Japan, have moved forward with a $50 billion loan for Ukraine, using frozen Russian central bank assets as collateral. The decision, announced by the White House on Wednesday, marks a groundbreaking strategy aimed at supporting Ukraine in its defense against Russia’s ongoing invasion.
The loan, first proposed earlier this year, is designed to provide essential financial support to Ukraine, using profits generated from the immobilized Russian assets. Daleep Singh, the White House deputy national security adviser for international economics, called the move unprecedented. “Never before has a multilateral coalition frozen the assets of an aggressor country and then harnessed the value of those assets to fund the defense of the aggrieved party,” Singh said, noting that the loan respects the rule of law and preserves international solidarity.
U.S. Contribution and Military Aid
The United States plans to contribute $20 billion to the loan, with the remaining $30 billion coming from other G7 nations. Singh said that the U.S. share will be split between economic support and military aid, depending on congressional approval. “The U.S. will provide $20 billion in support for Ukraine in this effort, whether it’s split between economic and military support or provided entirely via economic assistance,” Singh added.
The loan will be backed by profits generated from Russia’s frozen central bank assets, which amount to roughly $260 billion, most of which is held in European Union countries. The legality of using these funds for Ukraine had been debated for months, but the G7 has now agreed on a mechanism to utilize the assets without violating international law.
G7’s Commitment to Ukraine
The G7 nations, which represent some of the world’s wealthiest democracies, initially froze Russian assets after Moscow’s invasion of Ukraine in 2022. These funds are now being used to help Ukraine bolster its economy and military defense. Singh emphasized that the move reflects the G7’s commitment to Ukraine’s survival and the defense of democratic principles in the face of aggression.
The details of the loan are expected to be finalized during this week’s G7 finance ministers’ meeting in Stresa, Italy. The loan will mark a significant step in international efforts to support Ukraine and hold Russia accountable for its invasion.
