G7 Leaders Agree on $50 Billion Loan for Ukraine

G7 Leaders Agree on $50 Billion Loan for Ukraine

TEHRAN (Tasnim) – The G7 nations have agreed upon a $50 billion deal to fund Ukraine through profits on frozen Russian assets, Italian Prime Minister Giorgia Meloni said.

“I confirm to you that we have reached political agreement to provide additional financial support to Ukraine of approximately $50 billion by the end of the year,” Meloni, who is hosting the G7 this year, said on Thursday.

Meloni had invited Ukrainian President Volodymr Zelenskyy to join a special summit session on the Ukraine war with US President Joe Biden and the leaders of France, Germany, Canada, Japan and the United Kingdom.

Addressing the meeting at the luxury Borgo Egnazia resort, Zelenskyy thanked the leaders for their support, which he said would go towards “both defense and reconstruction”, though he emphasized the need for more weapons, Al Jazeera reported.

The G7 plan for Ukraine is based on a multiyear loan using profits from some $300 billion of impounded Russian funds.

The issue is complicated, however, because if the Russian assets one day are unfrozen, then the windfall profits will no longer be able to be used to pay off the loan.

Each G7 country will contribute to the loan package, European Commission President Ursula von der Leyen said.

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