G7 Nations to Ukraine's Rescue? A $50B Deal Is in the Works

G7 nations have reportedly agreed to loan money to Ukraine, with Russian assets as collateral
By Jenn Gidman,  Newser Staff
Posted Jun 13, 2024 6:42 AM CDT
$50B Loan to Ukraine May Rely on Frozen Russian Assets
A girl waves small Ukrainian flags during a public training session of Ukraine's national soccer team in Wiesbaden, Germany, on Thursday.   (AP Photo/Michael Probst)

As Ukraine continues to plead for aid in its fight against Russia, Group of Seven negotiators have struck a "provisional" agreement to lend Kyiv about $50 billion, reports Bloomberg. Profits from about $280 billion of frozen Russian assets would be used as collateral for the loan, which would start being disseminated by the end of 2024. "It's done. ... It is agreed and I do not expect any leaders ... to block it," one source tells the Financial Times. More:

  • Details: They're scarce so far, including on how the money would be disbursed, but the gist is that each participating nation's loan would be set up differently "on the basis of each participant's internal procedures, and each will carry the risk of the loans they provide, should the frozen assets generate fewer profits than envisioned," per Bloomberg. The G7 nations include the US, the UK, Canada, Italy, Japan, France, and Germany.

  • Details II: The money given to Ukraine could be used for bolstering its economy, supporting its military, and rebuilding destroyed cities, per Bloomberg. The deal will reportedly be officially announced in Italy on Thursday, when Ukrainian President Volodymyr Zelensky is set to join the G7 leaders. Sources say final details will be worked out after the summit.
  • Wrench in the plan: One possible complication is that the frozen Russian assets, mainly held in the European Union, could one day become unfrozen, especially if the war ends—which would then mean the profits from those assets couldn't be used to pay off the loan, notes the AP.
  • Biden-Zelensky: These two leaders will reportedly sign a bilateral security deal on Thursday in Italy "that will pledge long-term defense and security cooperation," per ABC News. "We'll be sending Russia a signal of our resolve," US national security adviser Jake Sullivan told reporters on his way to the G7 meeting.
  • Zelensky: The Ukrainian leader says he expects "important decisions" to be made at the summit, per the BBC.
  • The Biden factor: CNN takes a deeper look at the president's "emotional, political, and diplomatic investment in Ukraine," which the outlet notes "cannot be questioned and will be the foundation of his presidential legacy." Biden has made it clear he won't forsake Ukraine in its pushback against Russia. But CNN notes that Ukraine could see support stymied by everything from a growing far-right surge in Europe to the possibility that Donald Trump, who "disdains Ukraine" and "lionizes Putin," could be elected US president again in less than five months.
(More Group of Seven stories.)

Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.