G7 countries have decided to provide Ukraine with a $50 billion loan. This loan will be financed from the revenues of frozen Russian assets located in the EU, G7 countries, and Australia. According to information provided by the Italian government, this assistance will be a key contribution to Ukraine’s recovery and support in its fight against Russian aggression.
First payments by the end of the year
The first portion of the loan is planned to be handed over to Ukraine by the end of 2024. The funds will be channeled through “various channels” and will include financing for both military support and the restoration of infrastructure and replenishment of Ukraine’s state budget. According to Reuters, all payments will be completed by the end of 2027, demonstrating long-term support for Ukraine from the G7.
Importance of support from frozen assets
The European Union has already frozen around €211 billion of Russia’s assets. In total, G7 countries and Australia have frozen approximately €260 billion in securities and cash. Back in June 2024, G7 countries agreed that the revenues from frozen Russian assets would be used to support Ukraine.
Support from the EU
The EU Council also confirmed its participation in the G7 initiative by approving a €35 billion loan for Ukraine. This EU contribution to the overall loan will help cover part of the bloc’s commitments to Ukraine.
