G-7 agreed to lend 5 billion dollars to Ukraine. The decision came on the first day of the alliance’s three-day summit, which began in Italy on Thursday (June 13). The loan will be paid from the profits of Russian assets seized in allied countries. Ukraine will receive this money by the end of this year. British media BBC reported this news.
The amount of Russian assets seized by the G-7 countries and the European Union is about 325 billion dollars. Most of the Russian central bank’s assets are in Belgium.
The G-7 countries include Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. These countries have been providing significant financial and military support to Ukraine since Russia invaded Ukraine in 2022.
US President Joe Biden said at a joint news conference at the summit in Puglia, southern Italy, that the $5 trillion loan would “use Ukraine and remind Russian President Vladimir Putin that we are not backing down.”
Ukrainian President Volodymyr Zelensky thanked the United States and other allies for this assistance.
According to international law, countries cannot give assets seized by Russia to Ukraine. But Russian assets are earning a huge amount of interest every year. The interest amount is about 3 billion dollars per year. As a result, countries are trying to use this interest in creative ways.
According to the plan, 5 billion dollars will be given to Ukraine every year by taking a loan from the international market. 3 billion per year will be paid from interest on Russian assets as loan installments.
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