Leaders of the Group of Seven (G7) nations have agreed to facilitate a $50 billion loan to support Ukraine in its struggle against Russia, utilizing interest earned on frozen Russia’s frozen central bank assets as collateral, Associated Press reports.
Most of the funds will be provided through a US-backed loan, leveraging windfall profits from approximately $300 billion in Russian assets that the US and its allies froze following Moscow’s invasion of Ukraine. This approach circumvents legal complexities involved in directly transferring the frozen assets to Ukraine. The loan aims to provide Ukraine with the necessary resources to withstand Russian aggression. The funds are expected to be disbursed before the end of 2024.
Concerns remain about the financial burden if Russia regains control of its assets or if the interest generated is insufficient to repay the loan, with European countries wary of potential financial risks.
