G7 agrees on $50B loan for Ukraine backed by frozen Russian assets, says German chancellor

G7 states have reached a deal to give Ukraine a $50 billion loan backed by frozen Russian assets, German Chancellor Olaf Scholz announced on Thursday.

Speaking to reporters after meeting his G7 counterparts in Italy, Scholz said they have finally reached an agreement on this issue, after weeks-long intensive discussions.

“Today's decision is certainly a very historic step and a historic decision. The next step will be just to create the technical conditions for implementation in the shortest possible time,” he said.

Scholz underlined that with today's decision, G7 leaders are sending a clear message to Russian President Vladimir Putin, and demonstrating their unity and determination.

“The Russian president has a very obvious plan: he wants to push ahead with his war until everyone else gives up supporting Ukraine. This plan has failed today,” the chancellor said.

“With the G7 states' plan to mobilize $50 billion, which will be financed from the windfall profits of the frozen Russian assets, the foundation has been laid for Ukraine to be able to procure everything it needs in the near future, not only in terms of weapons, but also for reconstruction or energy infrastructure,” he added.

The leaders of G7 nations, including US President Joe Biden, British Prime Minister Rishi Sunak and French President Emmanuel Macron, gathered in the southern Italian region of Puglia on Thursday for an annual three-day summit to discuss global affairs, security issues, migration and climate change.