ROME – Leaders from the Group of Seven (G7) have finalized a plan to extend approximately $50 billion in loans to Ukraine, utilizing earnings from frozen Russian sovereign assets to back the funds, according to a statement released on Friday. The arrangement will allow Ukraine to service and repay these loans using the accumulated interest from these immobilized assets.
The G7 statement clarified that the funds could begin reaching Ukraine by year’s end, aligning with discussions among global finance officials at the International Monetary Fund and World Bank meetings in Washington.
The plan leverages interest from around €260 billion ($280.62 billion) in Russian assets, frozen under sanctions following Russia’s 2022 invasion of Ukraine. Most of these assets are managed by Euroclear, a central securities depository based in Belgium, positioning the European Union as a critical player in the loan initiative.
The G7 reiterated its commitment to Ukraine, stating, “The G7 remains steadfast in its solidarity to support Ukraine’s fight for freedom, recovery, and reconstruction.” They emphasized that “time is not on [Russian President] Putin’s side.”