G7 Agreed $50 Billion in Aid to Ukraine Using Profits from Frozen Russian Assets

US President Joseph Biden is also expected to sign a new ten-year security agreement with Ukraine

by Sededin Dedovic
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G7 Agreed $50 Billion in Aid to Ukraine Using Profits from Frozen Russian Assets
© Stefano Guidi / Getty Images

The G7 countries have agreed to allocate $50 billion to Ukraine by the end of the year, using profits from frozen Russian assets, the French presidency announced. It is also expected that U.S. President Joseph Biden will sign a new ten-year security agreement with Ukraine.

British Prime Minister Rishi Sunak will also announce today that London will send $310 million in aid to Kyiv. Leaders of the world's most developed democracies will discuss a range of challenges during the meeting from June 13 to 15, including the war in Ukraine and the Middle East, trade imbalances with China, threats from artificial intelligence, and developmental challenges in Africa, Reuters reports.

The G7 countries have agreed to allocate $50 billion to Ukraine by the end of the year, using profits from frozen Russian assets, the French presidency announced. The G7 will create a fund to support Ukraine using revenues from frozen Russian assets, Kyiv Independent reminds.

The fund will allegedly be created within an international organization such as the World Bank, with contributions in the form of loans for "exceptional acceleration of revenue." Although Western countries have frozen $300 billion of Russian assets, they can actually access only the income generated by these assets, approximately $3.2 billion annually.

By establishing a fund with loans that will be repaid using this income, countries can offer immediate support to Ukraine beyond this amount. British Prime Minister Rishi Sunak, at the G7 summit in Italy, will announce that London will send $309.69 million in aid to Ukraine, his office announced, Reuters reports.

"We must be determined and creative in our efforts to support Ukraine and end Putin's illegal war at this critical moment," Sunak said ahead of the summit.

British Prime Minister Rishi Sunak meets with Ukraines President Volodymyr Zelenskyy© Pool / Getty Images

The Group of Seven Nations (G7) and the European Union will also consider today how to use profits from Russian assets seized in the West to secure a large loan for Ukraine to provide financing for 2025.

The issue of Ukraine is high on the agenda of the seven Western countries that provide key financial and military assistance to Kyiv. Volodymyr Zelensky needs more long-range weapons, ammunition, and more air defense. Chancellor Scholz has already committed to working on securing greater air defense capacity for G7 countries and beyond.

So far, some European countries with Patriot missile defense systems have been hesitant to deliver them to Ukraine. Regarding the deployment of Western troops in Ukraine, G7 countries do not agree. While France and the United Kingdom are open to it, Germany, the U.S., and Italy strongly reject this step.

They will also discuss ways to end the war. Some heads of state and government from the G7 will travel to Switzerland on Saturday for an international peace conference organized by Ukraine, where aggressor Russia will not participate.

Saudi Arabian Prince Mohammed bin Salman apologized for not participating in the G7 summit held in Italy from June 13 to 15 in Bari, due to "obligations related to overseeing the pilgrimage" (ahead of the celebration of the significant Muslim holiday - Eid al-Adha), the Saudi state news agency reported.

Ukrainian President Volodymyr Zelensky met with Bin Salman, but more details have not yet been released. Saudi Arabia announced at the beginning of the month that it would not participate in the summit. China stated that it would stay on the sidelines but added that the peace summit in Switzerland is irrelevant as Russian President Vladimir Putin will not attend.

The Chinese demand that both warring parties must be present at the peace summit and that a summit without one side cannot bring progress in peace negotiations.

It is expected that Biden and Zelensky will sign a ten-year security agreement.

U.S. President Joseph Biden and Ukrainian President Volodymyr Zelensky will sign a ten-year security agreement on the sidelines of the G7 summit in Italy, which will obligate Washington to provide extensive military assistance to Kyiv, stated U.S.

National Security Advisor Jake Sullivan. The ten-year agreement includes continued training of Ukrainian forces, greater cooperation in the production of weapons and military equipment, ongoing military aid, and increased intelligence sharing.

However, the agreement can be withdrawn by a future U.S. president, meaning if Donald Trump takes office after the November elections, American media report, according to the Washington Post. In addition to potential problems for Biden, some leaders arriving in Italy are facing election problems at home.

Polls show that British Prime Minister Rishi Sunak is unlikely to hold his position after next month's elections, and the leaders of France and Germany are recovering from poor results for their parties in the European elections.

The G7 will also support a UN Security Council resolution for a ceasefire in the war between the Islamist terrorist organization Hamas and Israel. The seven countries and the EU expect Hamas to immediately accept the conditions for a ceasefire, said a high-ranking EU diplomat before the meeting.

He emphasized that Israeli hostages must be released and the humanitarian suffering of Palestinians in the Gaza Strip must end. However, diplomats are still unclear whether Israel fully supports this resolution.

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