EKo Hot Blog reports that the G7 has agreed to utilize frozen Russian assets to raise $50bn (£39bn) for Ukraine to bolster its defense against invading Russian forces.
US President Joe Biden emphasized that this decision serves as a clear message to Russia “that we’re not backing down,” though Moscow has warned of “extremely painful” retaliatory measures.
The funds are anticipated to be available by the end of the year, representing a long-term commitment to support Ukraine’s war effort and economy.
During the G7 summit in Italy, Ukrainian President Volodymyr Zelensky and President Biden signed a 10-year bilateral security agreement, described by Kyiv as “historic.”
The agreement includes US military and training aid to Ukraine but does not obligate Washington to deploy troops.
Following Russia’s full-scale invasion of Ukraine in 2022, the G7, alongside the EU, froze assets worth approximately $325bn. These assets generate about $3bn in annual interest.
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Under the G7 plan, this $3bn will be used to cover the annual interest on the $50bn loan for Ukraine, sourced from international markets.
At a joint news conference in Puglia, southern Italy, President Biden remarked that the $50bn loan would “put that money to work for Ukraine and send another reminder to [Russian President Vladimir] Putin that we’re not backing down.”
He reiterated that Mr. Putin “cannot wait us out, he cannot divide us, and we’ll be with Ukraine until they prevail in this war.”
President Zelensky expressed gratitude to his American and other allies for their steadfast support. Referring to the new security agreement, he stated, “It’s a truly historic day and we have signed the strongest agreement within Ukraine and the US since our independence [in 1991].”
The G7 group, consisting of Canada, France, Germany, Italy, Japan, the UK, and the US, has been a critical source of financial and military support for Ukraine in its fight against Russian occupation.
UK Prime Minister Rishi Sunak praised the $50bn loan deal as “game changing.”
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