The G7 will offer Ukraine $50 billion in loans from seized Russian assets

G7 leaders / Photo: AP

G7 leaders / Photo: AP

Leaders of major G7 democracies have agreed to a deal on Thursday to provide $50 billion in loans to Ukraine, using interest from frozen Russian sovereign assets, Reuters reported.

This political agreement was the main part of the opening day of the annual summit of G7 leaders, which was attended for the second year in a row by Ukrainian President Volodymyr Zelensky. 

He said he has signed a 10-year security agreement with Japan and that Japan will provide Ukraine with $4.5 billion this year. Zelensky will also sign a new long-term security agreement with US President Joe Biden later in the day.

The G7's plan for Ukraine is based on a multi-year loan using proceeds from some $300 billion in seized Russian funds.

Technical details will be finalized in the coming weeks, a G7 diplomatic source told Reuters. The source, who asked not to be named, said the additional funds would arrive by the end of this year.

The aim of the agreement is to ensure that it can work for years, regardless of who is in power in each G7 state.