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G7's $50B Ukraine Loan

G7 Leaders Approve $50 Billion Loan to Ukraine Using Russian Frozen Assets as Collateral

Posted on June 18, 2024
Writer: James Miller

Leaders from the Group of Seven (G7) finalized a plan to extend a $50 billion loan to Ukraine, utilizing profits from Russia’s frozen central bank assets as collateral. The agreement was reached during their summit in Italy, aimed at bolstering Ukraine’s efforts amid ongoing conflict with Russia.

The loan, predominantly guaranteed by the U.S. government, is designed to support Ukraine across military, economic, humanitarian, and reconstruction needs. 

Canada committed up to $5 billion, with European nations potentially contributing the remainder of the package. Japan also intends to assist, although its contributions cannot go toward the war effort.

This financial initiative marks a significant response to Russia’s invasion of Ukraine in 2022, which resulted in widespread condemnation and economic sanctions. 

By leveraging frozen assets rather than outright confiscation, the G7 aims to swiftly deploy aid while navigating legal complexities.

President Joe Biden described the loan as a “historic agreement,” emphasizing its strategic importance in supporting Ukraine’s resilience against Russian aggression. Ukrainian President Volodymyr Zelenskyy welcomed the move, highlighting its critical role in sustaining the country’s defense and recovery efforts.

For more information, read the full article on AP News.

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