The leaders of the G7 countries – the largest economies in the West – agreed on a scheme for providing loans worth $50 billion to Ukraine, using interest from Russian sovereign assets frozen after Moscow’s aggression in 2022 to repay the loan.
The political agreement became the central point of the first day of the annual summit of G7 leaders, to which Ukrainian President Volodymyr Zelenskyi is coming for the second year in a row.
He signed a new long-term security agreement with US President Joe Biden. The Ukrainian president also signed a 10-year security agreement with Japan. Tokyo is promising to provide Kyiv with $4.5 billion this year, underscoring continued strong Western support for Ukraine.
Calling the asset freeze agreement a “significant achievement,” Biden told reporters the decision was “another reminder to Putin that we are not backing down.” Biden added that with the help of this agreement, the leaders of the “Big Seven” “collectively told Putin that he will not be able to “stay over” us, he will not be able to split us.”
Speaking to journalists, Volodymyr Zelenskyy said that the loan is a “vitally important step forward in ensuring Ukraine’s permanent support for victory in this war.” According to him, these funds will be used “for both defense and reconstruction” of the country.
However, according to him, the Armed Forces still need more air defense systems to help Ukraine resist Moscow’s attacks on military and energy facilities.
The G7 plan for Ukraine includes a multi-year loan that will be repaid using the proceeds of approximately $300 billion in frozen Russian funds, most of which are blocked in the European Union.
The technical details will be finalized in the coming weeks, and new funds are expected to arrive in Kyiv by the end of this year thanks to contributions from all the G7 countries – the US, Canada, Great Britain, France, Germany, Japan and Italy.
“This is a very clear commitment that should inspire Ukrainians to do everything necessary to protect their independence and sovereignty,” German Chancellor Olaf Scholz said.
The aim of the agreement is to ensure that it remains in place for many years, regardless of who is in power in each G7 country. This reflects fears that US Republican presidential candidate Donald Trump may be far less sympathetic to Kiev if he defeats Biden in the November election. Reuters was told about this by a source familiar with the progress of the negotiations.
At the same time, Russia considers the West’s attempts to withdraw income from frozen financial assets as a crime, the representative of the Foreign Ministry, Maria Zakharova, said on Thursday, adding that Moscow’s response will be very painful for the European Union.
Secretary of State Blinken believes that the agreement signed by Biden and Zelensky strengthens the US commitment to support Ukraine
“The bilateral security agreement between the United States and Ukraine, which Presidents Biden and Zelensky signed today on the sidelines of the G7 summit in Apulia, is a historic manifestation of support for the long-term security of Ukraine, which strengthens the commitments made in the framework of the Joint Declaration of Support for Ukraine to the G7 in July 2023 , and approved by the presidential decree on additional appropriations for Ukraine, which was signed this spring”, – said Secretary of State Anthony Blinken.
“As part of this ten-year agreement, the U.S. and Ukraine commit to strengthening security and economic cooperation, promoting Ukraine’s institutional development and progress in reforms, holding Russia accountable for its actions, and creating the conditions for a just and durable peace.
The United States intends to provide assistance, advice, and training to develop Ukraine’s defense capabilities, help implement reforms necessary to advance Ukraine toward EU and NATO membership, and strengthen Ukraine’s defense industry through joint production and joint ventures with U.S. industry. The agreement contributes to our goal of ensuring the security, sovereignty and independence of Ukraine, integrated with the Euro-Atlantic community and capable of militarily resisting Russian aggression now and deterring it in the future.”, the statement says.
We will remind that the United States joined 15 partner countries that have already concluded bilateral agreements and arrangements with Ukraine within the framework of the Joint Declaration.
