The leaders of the G7 agreed the way to give about USD 50 billion in loans to Ukraine

The leaders of the G7, which brings together the seven most powerful economies in the worlddetails a a loan of about USD 50 billion in support of kyiv, supported by the benefits of sovereign funds Russians frozen after the attack Ukraineaccording to a statement from the agency.

“The loan money will be paid through multiple channels to support budgetary, military and reconstruction aid to Ukraine,” the G7 leaders said, adding that the aim begin distributing resources at the end of the year. “These loans will be repaid with random future income streams from the linking of Russian sovereign wealth funds,” the statement said.

The news came as world financial leaders gathered in Washington this week for meetings hosted by the International Monetary Fund and the World Bank.

Finance ministers have “agreed a technical solution that guarantees coherence, coordination, fair distribution of loans and solidarity among all G7 partners”.the statement said. “We will not relent in our determination to give Ukraine the support it needs,” the leaders said, calling on Moscow to end its war and pay for the damage it has done. it on the territory of Ukraine.

US officials told the news agency APWashington will contribute $20 billion of the total.

President Joe Biden said in a statement: “These loans will help the people of Ukraine to defend and rebuild their country. And our efforts make it clear: tyrants will be held accountable for the damage they cause. “

At a ceremony in Washington on Wednesday, US Treasury Secretary Janet Yellen and Ukrainian Finance Minister Sergii Marchenko gave written assurances that the US loan would be repaid with revenues. randomly from frozen Russian sovereign funds and not with American taxpayers’ money.

The additional USD 30 billion will come from the European Union, the United Kingdom, Canada, Germany, France, Italy and Japan.

“To be clear, nothing like this has ever been done before,” said Daleep Singh, US assistant national security adviser for international economics. “Never before has a multilateral coalition frozen the assets of an aggressor country and then leveraged the value of those assets to finance the defense of the accused party, while giving respect for the rule of law and maintain loyalty.”

The idea of ​​using frozen Russian funds to help Ukraine was initially met with resistance from European officials, who cited legal and financial stability problems. The measure gained momentum after more than a year of negotiations between Treasury officials and after Biden signed legislation in April authorizing the government seize about $5 billion in Russian state assets in the United States.

The G7 announced in June that most of the loan would be backed by profits from some USD 260 billion in connected Russian assets. Most of that money is located in EU countries.

The United States and its allies immediately froze Russian central bank assets that they had access to when Moscow invaded Ukraine in 2022.

(With information from AP, AFP and Reuters)