The Group of Seven (G7) nations are advancing plans to provide Ukraine with $50 billion in loans, backed by frozen Russian assets, according to the White House.
Earlier this year, leaders of the G7 agreed to create a substantial loan package to support Ukraine in its war against Russia. The interest generated from Russia’s frozen central bank assets will serve as collateral for the loan.
On Wednesday, Daleep Singh, the White House deputy national security adviser for international economics, announced that the United States intends to contribute $20 billion, with the remaining $30 billion coming from the European Union, the United Kingdom, Canada, Japan, and other allies.
“To be clear, nothing like this has ever been done before,” Singh noted. “This is the first time a multilateral coalition has frozen the assets of an aggressor country and used the value of those assets to support the defense of the victimized nation, all while upholding the rule of law and maintaining global solidarity.”
Legal Debate
Singh explained that the U.S. plans to split its share between economic and military aid for Ukraine, though military assistance will require congressional approval.
“Either way, the U.S. will provide $20 billion to support Ukraine, whether it’s divided between economic and military aid or given entirely as economic assistance,” he clarified.
Further details about the loan are expected to be discussed during this week’s G7 finance ministers’ meeting in Stresa, Italy.
The G7 first announced in June that the majority of the loan would be secured by the interest earned on approximately $260 billion in frozen Russian assets, most of which are held in EU countries. The decision followed extensive debates over the legality of seizing these funds to support Ukraine.
When Russia launched its “special military operation” against Ukraine in 2022, the U.S. and its allies immediately froze any Russian central bank assets within their reach.
