G7 To Provide $50 Billion Loan to Ukraine To Fight Russia

Vinod Dsouza
G7 leaders italy 2024 summit
Source: Mangiapane / Reuters

The leaders of the G7 agreed to provide a loan of $50 billion to Ukraine to help them fight Russia. The deal was struck at a summit in Italy’s Apulia region and the leaders agreed to use frozen assets from Russia as collateral.

Around $250 billion in frozen Russian assets are currently held with the European Union and G7. In addition, an extended amount of contributions are also expected from Canada, Japan, and other countries in Europe.

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Reports suggest that the World Bank (IMF) may also play a role in the deal and disburse the U.S. portion of the loan. The European Commission President Ursula von der Leyen made it clear that G7 will not be footing the $50 billion bill as it comes from Russian frozen assets. Therefore, taxpayers are not burdened through the loan to Ukraine to fight Russia.

U.S. President Joe Biden called the G7 deal a “historic agreement” that could help Ukraine defend itself from Russia. G7 has involved multiple lenders in the deal to mitigate and share the risk accordingly.

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However, each country from G7 is yet to finalize its individual contribution to Ukraine in the latest agreement against Russia. The next step would involve the G7 alliance securing approvals from EU member states and signing contracts between lenders.

G7: Ukraine Says $50 Billion Loan To Fight Russia is An Important Milestone

Joe Biden World Leaders US NATO
Source: Doug Mills / The New York Times

The President of Ukraine, Volodymyr Zelenskyy praised the G7 agreement calling it a crucial moment in its fight against Russia. The U.S. and other Western allies including the G7 have already provided Ukraine with billions of dollars to beat Russia.

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The $50 billion loan is yet another agreement between G7 and Ukraine against the aggressor Russia. On the other hand, Russia is taking the help of China and other developing countries to counter the G7 narrative.