G7 leaders have agreed to engineer a 50 billion-dollar loan to help Ukraine in its fight for survival. The loan will be secured by interest earned on profits from Russia’s frozen central bank assets. The details of the deal were being discussed by G7 leaders at their summit in Italy, and the money could reach Kyiv before the end of the year, according to US and French officials.
The loan will be mostly guaranteed by the US government, and will be backed by profits being earned on roughly 260 billion dollars in immobilised Russian assets. The majority of these assets are held in European Union nations. The loan could be topped up with European money or contributions from other countries, with Canada agreeing to loan Ukraine up to five billion dollars.
The plan is a vital step forward in providing sustainable support for Ukraine in winning the war against Russia, according to Ukraine’s president, Volodymyr Zelensky. The loan will allow Ukraine to spend the money on various needs, including military, economic, and humanitarian purposes, as well as reconstruction.
The move to unlock Russia’s assets comes after a long delay in Washington on approving military aid for Ukraine. The World Bank estimates that the costs for reconstruction and recovery of Ukraine stand at 486 billion dollars over the next 10 years.
The loan agreement was hailed as a “historic agreement” by US President Joe Biden, who said it would provide the necessary resources to Ukraine for its economic energy and other needs. The goal is to get the money to Ukraine quickly, with the French official saying that the details could be worked out quickly and the 50 billion dollars would be disbursed before the end of 2024.
Joe Biden (Via Joe Biden/Twitter)
The plan has its critics, with some nations worried that they will be left holding the bag if Ukraine defaults on the loan. China’s Embassy has also criticized the plan, urging the US to stop slapping illegal unilateral sanctions and play a constructive role in ending the conflict and restoring peace.
The agreement is seen as a crucial step in supporting Ukraine in its fight against Russia, and could have significant implications for the war. The loan will be used to help Ukraine fund its war effort, as well as support its economic and humanitarian needs. The plan is to work quickly to get the money to Ukraine, with the goal of disbursement before the end of 2024.
The move is part of a broader effort by the US and its allies to support Ukraine in its fight against Russia. The REPO Act, passed by the US Congress this year, allows the Biden administration to seize five billion dollars in Russian state assets in the US and use them for the benefit of Kyiv. This arrangement is being worked out, and could provide additional funding for Ukraine.
The loan agreement is a significant step forward in providing sustainable support for Ukraine, and could have significant implications for the war. It remains to be seen how the plan will be implemented, and whether it will be enough to help Ukraine in its fight against Russia.
