G7 Nations Push for $50 Billion Ukraine Loan Agreement by End of October

The Group of Seven (G7) aims to finalize a $50 billion loan agreement for Ukraine by the end of October. The loan, primarily funded by immobilized Russian assets, needs a political commitment to operationalize by year-end. The EU seeks to extend its asset freeze period to ensure USA's participation.

The Group of Seven (G7) countries are pushing to finalize a political agreement on a $50 billion loan for Ukraine by the end of October, ensuring the funds are available by year-end, a senior European Commission official revealed on Monday. The G7 includes the United States, Canada, Japan, Britain, France, Germany, and Italy, with the EU participating as a collective entity.

According to European Commission Executive Vice President Valdis Dombrovskis, the G7 presidency seeks political commitment for the loan initiative by late October. This timeline would provide enough time to operationalize the loans by year-end. The loan will be backed by profits from immobilized Russian assets, most of which are located in the EU.

The EU is expected to contribute up to 35 billion euros of the total loan. Canada, the UK, and Japan have pledged support, while the US requires assurances that frozen asset profits will cover the loan repayments. The EU aims to extend its asset freeze renewal from six to 36 months to mitigate legal uncertainties and secure US participation.

(With inputs from agencies.)