Leaders of the Group of Seven say they have reached an agreement to utilise the earnings from blocked Russian assets to fund a $50 billion loan to Ukraine.
The group said in a statement issued following a meeting of G7 finance ministers in Washington that these loans will be serviced and repaid by future flows of extraordinary revenues resulting from the immobilisation of Russian sovereign assets, in accordance with G7 respective legal systems and international law.
Leaders aim to start disbursing the funds by the end of the year.
The loan would be repaid entirely using the windfall profits generated by more than $250 billion of Russian assets that were immobilised across Western countries after Moscow’s invasion of Ukraine in February 2022.
Washington announced that it would contribute $20 billion to the loan during December, in a bid to shield its contribution from the fallout of the U.S. election. Donald Trump has previously questioned Washington’s support to Ukraine should he return to the While House.
The agreement comes after the U.S. previously said that it wouldn’t be able to give a substantial amount unless the EU changed its rules governing sanctions.
The EU, which is holding most of the frozen funds, pledged to give up to €35 billion to Ukraine. In the end, the bloc is expected to also allocate $20 billion. The remaining $10 billion will be split among the U.K., Canada and Japan.
A statement from G7 ministers said that the funds would be allocated through bilateral loans, starting as soon as Dec. 1, until the end of 2027.
The EU finalised its fast-track process for its own contribution to the loan this week.
