Skip to content
Edit post

G7 confirms agreement on $50 billion loan for Ukraine backed by Russian assets revenue

by Martin Fornusek and The Kyiv Independent news desk June 13, 2024 9:03 PM 2 min read
The G7 leaders during a summit in Apulia, Italy, on June 13, 2024. (German Chancellor Olaf Scholz/X)
This audio is created with AI assistance

Support independent journalism in Ukraine. Join us in this fight.

Become a member Support us just once

Group of Seven (G7) leaders on June 13 publicly confirmed an agreement on a plan to provide Ukraine with a $50 billion loan by the end of the year.

The loan should be repaid using interest from some $300 billion in frozen Russian assets.

The French presidency said already on June 12 that an agreement had been reached, concluding months of back-and-forth debates between Europe and Washington.

"(Vladimir) Putin has a plan: He wants to push the war until everyone gives up supporting Ukraine. His plan failed today," German Chancellor Olaf Scholz said.

"As the G7 we are mobilizing $50 billion for Ukraine - to defend its sovereignty. A historic step."

Italian Prime Minister Giorgia Meloni also confirmed that a political agreement has been reached to provide Ukraine with $50 billion by the end of the year.

Meloni stressed that the funds for covering the loan will not come from the confiscation of Russian assets themselves, but through profits generated by them and accumulated over time.

Speaking at the summit, Ukraine's President Volodymyr Zelensky called on G7 leaders to back the $50-billion plan but also urged the creation of a mechanism for the full confiscation of $300 billion in frozen Russian funds.

Nikkei Asia reported on June 11 that the G7 would create a fund to support Ukraine using the income generated from frozen Russian assets.

The fund will reportedly be created under an international organization such as the World Bank, with contributions in the form of "Extraordinary Revenue Acceleration" (ERA) loans.

While Western countries have frozen $300 billion in Russian assets, they can only access the income generated by these funds, approximately $3.2 billion, annually.

By setting up a fund with loans to be repaid using this income, countries can offer immediate support to Ukraine beyond this amount.

According to Reuters, technical details of the plan will be finalized in the coming weeks.

Zelensky at G7 summit: We need mechanism for confiscating $300 billion in Russian assets
“We need to make the states that support terror understand that they will pay for it,” President Volodymyr Zelensky said on June 13 during a G7 summit in Italy.

News Feed

Ukraine Daily
News from Ukraine in your inbox
Ukraine news
Please, enter correct email address
1:56 AM  (Updated: )

Trump shot at during Pennsylvania rally.

At a rally in Pennsylvania, gunshots were reportedly fired at former U.S. President Donald Trump, prompting security staff to rush him off stage.
10:47 PM

Kremlin spokesman threatens Europe over decision to host US missiles.

"Our country is in the crosshairs of American missiles located in Europe. We've been through all this before," he said in an interview with Russian TV propagandist Pavel Zarubin. "We have enough potential to deter these missiles. But the capitals of these states are potential victims."
9:18 PM

Chief emergency worker among two killed in Kharkiv Oblast.

Half an hour after emergency workers arrived at the scene, Russian troops launched a second attack on the same location, Artem Kostyria, head of the State Emergency Situations Service's branch in Kharkiv Oblast, and police sergeant Oleksiy Koshchii.
5:24 PM

Russian kamikaze drone flies deep inside Belarus, whereabouts unknown.

The Belarusian Hajun monitoring group reported it had flown 250 kilometers "over Gomel and Zhlobyn, entered the Mogilev region, and then the Minsk region." It also said a Belarusian Mi-24 helicopter and Su-30 fighter jet were scrambled to intercept the drone before it "presumably flew to Vitebsk."
3:37 PM

US developing new 'extended-range' missile for Ukraine's Air Force.

The new weapon to be developed is an Extended-Range Attack Munition (ERAM), that aims to be a low-cost, quick to produce air-launched missile with a range of around 460 kilometers. The manufacture of the weapon is intended to begin no later than two years after the awarding of the contract and up to 1,000 are to be produced each year.
3:19 PM

Children's theater goes underground in Kharkiv

In the heart of Kharkiv, Kharkiv Theater for Children and Youth performs in bomb shelters under constant threats of Russian attacks. The Kyiv Independent visited one of the theater's performances in late June to meet the dedicated actors and their no less dedicated audience.
MORE NEWS

Editors' Picks

Enter your email to subscribe
Please, enter correct email address
Subscribe
* indicates required
* indicates required
Subscribe
* indicates required
* indicates required
Subscribe
* indicates required

Subscribe

* indicates required
Subscribe
* indicates required

Subscribe

* indicates required
Subscribe
* indicates required

Subscribe

* indicates required
Successfuly subscribed
Thank you for signing up for this newsletter. We’ve sent you a confirmation email.