Leaders of the Group of Seven wealthy democracies have agreed to engineer a $50 billion loan to help Ukraine in its fight for survival that would use interest earned on profits from Russia’s frozen central bank assets as collateral.
Details of the deal were still being hashed out as G7 leaders gathered for a summit in Italy, but the money could reach Kyiv before the end of the year. That’s according to a French official who confirmed the agreement Wednesday ahead of a formal announcement at the summit. Here’s how the plan would work:
Where would the money come from?
Most of the money would be provided in the form of a loan from the U.S. government that would be backed by windfall profits being earned on roughly $300 billion in immobilized Russian assets. The vast majority of the money is being held in European Union nations.
A French official said that while the loan would be mostly U.S.-guaranteed, it could be “topped up” with European money or other national contributions.
Why not just give Ukraine the frozen assets?
That’s much harder to do.
For more than a year, officials from multiple countries have debated the legality of confiscating the money and sending it to Ukraine.
