G7 Approves $50B Loan to Kyiv, Funded by Frozen Russian Assets

G7 leaders have finalized the terms for a $50 billion loan to support Ukraine, financed through the profits from Russian assets frozen following the invasion, according to a statement on Friday.

The Group of Seven nations announced they had reached an agreement on how to administer the loan, intending to start releasing funds by year-end. These funds are set to assist Ukraine’s budget, military needs, and reconstruction efforts.

The announcement coincided with financial leaders’ meetings held in Washington this week by the International Monetary Fund and World Bank. Finance ministers agreed on a technical approach to ensure that lending is consistent, fair, and coordinated across all G7 members.

“We are unwavering in our commitment to provide Ukraine with the support needed to succeed,” the G7 leaders emphasized, also calling for Russia to end its aggression and assume responsibility for the damage inflicted on Ukraine.

 

U.S. Commits $20 Billion as Part of G7 Aid

This week, U.S. President Joe Biden confirmed that the United States would contribute $20 billion to the G7 package, funded by interest generated from immobilized Russian assets, so as not to add to the taxpayer burden.

“Our message is clear: those who wreak havoc will be held accountable,” Biden remarked. U.S. Treasury Secretary Janet Yellen also formalized this commitment in a joint statement with Ukrainian Finance Minister Sergii Marchenko, specifying that neither U.S. nor Ukrainian tax revenue would be used for repayment.

With the U.S. presidential election on November 5, economic issues remain a priority for American voters. Washington aims to direct $10 billion of its aid toward Ukraine’s economic support, while the remaining half will go to military assistance, pending congressional approval.

The rest of the $50 billion will be covered by other G7 members, including the European Union, UK, Canada, and Japan. The EU, which holds about $235 billion in frozen Russian central bank assets, plans to contribute approximately €18 billion ($19.4 billion).

European Commission President Ursula von der Leyen reaffirmed the EU’s position, stating, “Russia must stop its unlawful war and bear the costs of the destruction caused. We stand firm in our support for Ukraine’s pursuit of freedom.”

The U.S. previously sought assurances from the EU that these frozen Russian assets would remain inaccessible. Despite initial delays, the G7 reiterated its enduring commitment to Ukraine, declaring, “Time is not on President Putin’s side.”