G7 Pledges $50 Billion Loan for Ukraine from Frozen Russian Assets

G7 allies have pledged a $50 billion loan to Ukraine, using profits from frozen Russian assets as collateral. The U.S. will supply $20 billion, with the rest from the EU, UK, Canada, and Japan. The loan aims to support Ukraine's economy and military amidst Russia's invasion.

In a landmark financial endeavor, the Group of Seven (G7) nations announced a $50 billion loan package to support Ukraine, utilizing profits from frozen Russian assets as collateral. The White House confirmed on Wednesday that this unprecedented move aims to bolster Ukraine's economy and military efforts in the ongoing conflict with Russia.

Daleep Singh, the White House deputy national security adviser on international economics, stated that the U.S. intends to contribute $20 billion, while the remaining $30 billion will come from G7 partners including the European Union, the United Kingdom, Canada, and Japan. This multilateral initiative signifies a unique strategy to harness frozen assets against an aggressor nation while adhering to the rule of law.

The decision emerges after considerable legal debate on the confiscation and redistribution of Russian assets. Final details of the loan agreement are expected to be discussed during the G7 finance ministers' meeting in Stresa, Italy, as the coalition continues to navigate complex geopolitical and legal landscapes.

(With inputs from agencies.)