G7 Leaders Agree On Loan To Ukraine Worth 50 Billion Dollars

G7 Leaders Agree On Loan To Ukraine Worth 50 Billion Dollars

June 14, 2024, 7:32 a.m.

The leaders of the Group of Seven nations share the belief that their allies in Ukraine need more support for weapons and to rebuild. They have agreed to provide a loan worth 50 billion dollars using interest from frozen Russian assets.

The leaders welcomed Ukrainian President Volodymyr Zelenskyy to their annual summit on Thursday in the southern Italian region of Puglia. This is the second G7 gathering that Zelenskyy has held in-person meetings with his counterparts.

The G7 leaders have been debating how to use an estimated 300 billion dollars in Russian funds held mostly in European banks. They plan to provide a loan to Ukraine that would be repaid using the interest on those assets.

Senior US officials say the money will continue to be held until the Russians pay for the damage they caused -- even after any ceasefire. Analysts at the World Bank put the cost of reconstruction over the next decade at more than 480 billion dollars.

"This is a very strong commitment, which gives the people of Ukraine the courage to do what is now necessary to defend their independence and their sovereignty," said German Chancellor Olaf Scholz.

Russian officials criticized the move, saying that taking income from their assets would be illegal. Foreign Ministry spokesperson Maria Zakharova said buoying the Kyiv regime with someone else's money threatens to "unbalance the financial system" and "create disastrous crises."

Russian leaders have shown no sign of letting up in their fight. They have doubled their annual spending on defense.

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