G7 agrees on $50b Ukraine loan from frozen Russian assets

Negotiators at the Group of Seven (G7) summit have reached a provisional agreement on a $50 billion loan to Ukraine, utilising frozen Russian assets held in Western countries as collateral, according to sources familiar with the talks.

“It’s done. At the sherpa level, it is agreed, and I do not expect any leaders… to block it,” said one official involved, who spoke on condition of anonymity. “There is provisional agreement… but of course you need formal approval from the G7 leaders.”

The formal announcement of the deal is anticipated later on Thursday at the G7 summit in Bari, Italy, where Ukrainian President Volodymyr Zelenskyy is expected to be present.

The US proposal involves leveraging profits from approximately $260 billion in frozen Russian central bank assets, most of which are held in the European Union, to secure a $50 billion loan for Ukraine. This initiative aims to utilise windfall profits from these immobilised funds as collateral.

Attribution: The Financial Times, The Associated Press.