The G7 group, comprising seven of the world’s most advanced economies, announced a new agreement to provide Ukraine with a loan totaling roughly $50 billion.
Frozen Russian Assets
The loan is unique in that it will be financed by interest accrued on Russian assets frozen by Western sanctions following Russia’s invasion of Ukraine, according to reports Digi24.
In a formal statement issued at a Washington summit, the G7 declared that:
“the service and repayment of these loans will be assured by future exceptional revenue flows generated from the immobilization of Russian sovereign assets, in line with the respective legal systems of G7 countries and international law.”
The aim, according to the G7, is to begin making these funds available to Ukraine by the end of the year, as cited in the joint release. This announcement aligns with the annual IMF and World Bank meetings, where finance leaders worldwide convened in Washington to discuss global economic matters.
Given in Installements
A follow-up statement from the G7 finance ministers elaborated on the structure of the loan.
It explained that the funds would be disbursed through a series of bilateral loans beginning December 1 and continuing through late 2027, with installments meant to meet Ukraine’s urgent funding needs.
The phased distribution allows each G7 member to align its financial contributions with its domestic schedules and legislative requirements.
Although exact sums for each installment were not disclosed in the declaration, the statement mentioned that more detailed information would be provided in the coming days.
In addition, each bilateral loan will officially commence no later than June 30, 2025, a schedule that gives G7 nations the necessary flexibility to work out the specifics of the arrangement.
