G7 agrees on using Russian assets to finance loan to Ukraine

G7 leaders have agreed on how frozen Russian assets can be used for a loan to Ukraine, AFP reports, citing anonymous White House aides. Each country will provide a loan based on the size of its economy, to be repaid with the profits from the assets.

The leaders of the G7 - Canada, France, Germany, Italy, Japan, the US and the UK, along with the EU as a "non-enumerated member" - are meeting in Italy this week for a three-day summit. Further sanctions against Russia and support for Ukraine were among the main topics of discussion. Ukrainian president Volodymyr Zelenski is also attending.

On Wednesday, it emerged that G7 leaders agreed to loan Ukraine $50 billion (€46.13 billion) by using Russia's frozen assets. But they had not yet agreed on how this would be done.

An anonymous White House aide confirmed to the French news agency AFP on Thursday that there is now an agreement. "We have a political agreement at the highest level," they said. "Fifty billion dollars will be spent on Ukraine."

Solidarity loans

The G7 countries will each make a loan to Ukraine, to be repaid over time with the interest on some $300 billion in frozen Russian assets. Most of these are held in Belgium, at Euroclear in Brussels.

The loans will be made by each country according to its own internal procedures. Each country will also bear the risk of its own loan if the assets yield less than originally expected.

"This is a solidarity loan," say White House officials. "We're going to share the risk because we share the commitment to get this done."

"We're going to share the risk because we share the commitment to get this done"

Technical details will be worked out after the summit. The loans will be used to support Ukraine's defence industry, economy and reconstruction. G7 leaders have yet to discuss the deal, so details could change.

^{PHOTO: © Filippo MONTEFORTE / AFP}