G7 announces $50 billion loan backed by Russian assets to help Ukraine

Washington:

G7 leaders have finalized details of a $50 billion loan to help Kiev, backed by profits from Russian government bonds frozen after the invasion of Ukraine, according to a statement released Friday.

Leaders of the Group of Seven wealthy democracies said they have “reached a consensus on how to repay loans of around $50 billion,” with the aim of starting disbursing funds by the end of this year.

“The loan proceeds will be disbursed through multiple channels to support Ukraine’s fiscal, military and reconstruction assistance,” the G7 leaders added.

Their announcement came as world financial leaders gathered in Washington this week for meetings organized by the International Monetary Fund and the World Bank.

Finance ministers agreed on a technical solution that ensures consistency, coordination, fair credit distribution and solidarity among all G7 partners, the statement said.

“We will not tire of our resolve to give Ukraine the support it needs to prevail,” the leaders added.

They called on Moscow to end the war and compensate the damage to Ukraine.

$20 billion in American aid

This week, US President Joe Biden said that as part of the G7 package, the United States would provide $20 billion in loans to Ukraine, to be repaid with interest earned on immobilized Russian government bonds.

This is intended to support Ukraine now, “without burdening taxpayers.”

“Our efforts make it clear: tyrants will be responsible for the harm they cause,” Biden said.

US Treasury Secretary Janet Yellen signed a statement with her Ukrainian counterpart Sergii Marchenko on Wednesday expressing their intention to take out the loan.

This move also meant that new U.S. or Ukrainian tax dollars would not be the source of reimbursement.

Economic concerns remain top of mind among American voters with just over a week to go until the country’s presidential election on November 5.

Washington aims to provide at least $10 billion of the loans for economic support, while the other half is expected to take the form of military aid.

But this would require additional authorization from Congress.

The remaining $30 billion in loans will come from a combination of G7 partners, including the European Union, the United Kingdom, Canada and Japan, U.S. officials said.

“We have once again made clear our unwavering commitment to Ukraine for as long as necessary,” the G7 statement said on Friday.

“Time is not on President (Vladimir) Putin’s side.”

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)