MainNews -

Reuters: G7 finance ministers to agree on Ukraine loan deal in broad terms, no details

U.S. Treasury Secretary Janet Yellen said that the loan could be about $50 billion, but no amount has been agreed upon.

Reuters: G7 finance ministers to agree on Ukraine loan deal in broad terms, no details
Photo: pixabay

The Group of Seven (G7) finance ministers are not expected to agree on the details of a loan to Ukraine at a meeting in Italy today.

Reuters reports this with reference to officials.

Finance ministers and central bank governors of the Group of Seven countries - the United States, Japan, Germany, France, the United Kingdom, Italy and Canada - are meeting today in the northern Italian city of Stresa.

The United States is pushing its allies to agree to a loan secured by future earnings from about $300 billion in Russian assets frozen after Moscow's invasion of Ukraine in February 2022. US Treasury Secretary Janet Yellen said the loan could be around $50 billion, but no amount has been agreed. Other G7 officials involved in the talks expressed caution, citing complex legal and technical issues that need to be resolved.

"With great difficulty, we found a compromise on the use of the (already accrued) interest. The problem is how the legal basis for this can be used for future profits," Italian Economy Minister Giancarlo Giorgetti told reporters, referring to the deal already concluded by the European Union.

Giorgetti, who will chair the meeting (Italy holds the G7 presidency), said that finding a solution "will not be easy" and added that several central banks have expressed reservations about the US proposal.

One European official said that the communiqué at the end of the meeting would likely contain an agreement on the loan in general, but without details. "I don't think there will be any numbers," the official said when asked about the $50 billion figure.

German Finance Minister Christian Lindner also said that many questions remain open, and he does not expect the G7 to make a concrete decision at the meeting in Italy. In this case, officials will continue negotiations in the hope of making progress before the G7 heads of government meet in the southern Italian region of Puglia on 13-15 June.

Yellen said she expects "general agreement on the concept" of using the proceeds of Russian assets to provide Ukraine with significant financial support after 2025.

A key condition for EU countries, where most of the assets are held, is to use only the proceeds, not the confiscation of the principal.

Giorgetti noted that the loan would "meet with Russian retaliation" and therefore any agreement must have a "solid legal basis", echoing comments made this week by Japanese Finance Minister Suzuki Sunichi.

According to him, under the proposal being discussed, the loan would be disbursed to Kyiv in a lump sum and possibly be provided through the G7 countries directly, rather than through a global financial institution such as the World Bank.

Read news on social networks Facebook, Twitter and Telegram