G7 decides to transfer $50 billion to Ukraine by end of year
Photo: G7 leaders agree to provide Ukraine with $50 billion (Getty Images)
The G7 countries will provide Ukraine with a $50 billion loan by the end of the year. It will be repaid using profits from Russian assets, according to the communiqué of the leaders following the G7 summit in Italy and the Ministry of Finance of Ukraine.
The leaders of the G7 countries stated that they still aim to dispel the notion that time is on Russia's side and that it will be able to cause Ukraine's economic collapse.
"With a view to supporting Ukraine’s current and future needs in the face of a prolonged defense against Russia, the G7 will launch Extraordinary Revenue Acceleration (ERA) Loans for Ukraine, in order to make available approximately USD 50 billion in additional funding to Ukraine by the end of the year," the communiqué specifies.
The document clarifies that the loan will be repaid using future profits from frozen Russian assets in Western countries.
The G7 leaders also confirmed that Russian assets in their countries will remain frozen until Russia ceases its aggression and compensates Ukraine for the damages inflicted (previously, the EU had to extend the asset freeze annually through separate decisions).
"We intend to disburse this financing through multiple channels that direct the funds to Ukraine’s military, budget, and reconstruction needs – within the constraints of our respective legal systems and administrative requirements," the communiqué emphasizes.
Ukraine's reaction
Ukraine's Minister of Finance, Serhii Marchenko, welcomed the G7's decision regarding the $50 billion loan.
"The decision of the G7 leaders is a powerful signal of the unity of the democratic world. Russia must feel the price of its aggressive war against Ukraine and pay for its illegal actions," the official noted.
According to him, using the profits from frozen assets is one of the first steps.
"USD 50 billion will cover Ukraine's most urgent needs in 2025 and strengthen its resilience in the face of a full-scale war," the minister added.
$50 Billion for Ukraine
Recently, the European Union approved the transfer of profits from frozen Russian assets to Ukraine.
Against this backdrop, the G7 countries developed an initiative to provide Ukraine with a large amount of funds in a relatively short period. This is a loan that will be repaid using profits from Russian assets.
The fact that the G7 approved this initiative became known yesterday, June 13.
