G7 to Finalize $50 Billion Loan for Ukraine Secured by Russian Assets

The Group of Seven wealthy democracies is expected to finalize a framework for a $50 billion loan to Ukraine by October, leveraging assets frozen from the Russian central bank. This initiative aims to capitalize on $300 billion in frozen Russian assets to support Ukraine amidst its ongoing conflict.

The Group of Seven wealthy democracies is poised to finalize a framework deal for a Russian-asset-backed $50 billion loan to Ukraine by October, European Economic Commissioner Paolo Gentiloni announced on Thursday. The completion of this deal is anticipated before the end of the year, allowing it to head into the markets.

Speaking at a G20 meeting in Rio de Janeiro, Gentiloni highlighted significant progress on the technical and legal aspects of the loan. The details were initially agreed upon in principle in June. 'I believe we are making substantial progress both technically and politically,' he stated, referring to a recent G7 ministers' meeting.

The $50 billion loan will be serviced using proceeds from $300 billion in Russian central bank assets frozen following Russia's invasion of Ukraine in early 2022. Although there is currently no unanimous support within the G7 to seize the $300 billion, there is consensus on the legality of using the profits generated by these assets.

(With inputs from agencies.)