G7 Pledges $50 Billion Loan Aid for Ukraine

The G7 nations have agreed to provide approximately $50 billion in loans to Ukraine, secured by frozen Russian sovereign assets. This financial aid will leverage extraordinary revenues from immobilized Russian funds. The plan was discussed at global finance meetings in Washington and aims to assist Ukraine's recovery.

The Group of Seven (G7) wealthy nations have united in a significant financial gesture, reaching consensus to deliver loans worth roughly $50 billion to Ukraine. These loans will be backed by the earnings from frozen Russian sovereign assets, as announced in a statement released on Friday.

The statement revealed that the loans will be serviced and repaid by future flows of extraordinary revenues derived from the immobilized Russian sovereign assets. G7 leaders plan to start disbursing the funds before year-end. This announcement coincided with the International Monetary Fund and World Bank meetings in Washington.

Originally discussed at the G7 annual summit in southern Italy in June, the plan to provide loans backed by the interest from blocked Russian funds required resolution of technical details. With a substantial portion of Russian assets held in Euroclear, the European Union plays a crucial role in the plan. "The G7 remains steadfast in its support for Ukraine," the statement affirmed, emphasizing the urgency of the initiative.

(With inputs from agencies.)