German Finance Minister Christian Lindner has confirmed that the Group of 7 countries have agreed to provide Ukraine with $50bn.
He wrote about this in X. According to him, the details are currently being worked out.
"We are using the interest from frozen assets for this purpose - a smart tool that demonstrates our unity to Putin, helps Ukraine a lot and relieves the burden on budgets," the minister said.
Transfer of Russian assets to Ukraine
Bloomberg reported that the G7 has already agreed to this mechanism of financing Ukraine. According to the agency's sources, the leaders of the countries have agreed on the structure of the loan. Countries should provide assistance in accordance with their own capabilities. Ukraine will start receiving funds this year.
The loans will be structured differently based on the internal procedures of each participant, and each country will take a risk if the frozen assets bring less profit than expected. Canada is ready to finance this initiative in the amount of $3.6 billion.
According to the source, the final technical details will be agreed upon after the summit. The aid could be used to support Ukraine's defence, economy and recovery.
Revenues from frozen assets are estimated at 3 to 5 billion euros per year. The EU has already agreed to provide Ukraine with the proceeds every six months. At the same time, the U.S.-led initiative provides support and also protects the aid from political changes on both sides of the Atlantic in a year of multiple elections.
According to Politico, the main initiative to provide Ukraine with a $50bn loan guaranteed by Russian profits came from the US.
Context
Before the G7 summit, White House National Security Communications Advisor John Kirby said that steps would be announced at the event to provide Ukraine with new aid based on frozen Russian financial assets. A possible solution was mentioned as a loan to Ukraine in the amount of approximately USD 50 billion, which would be covered by the proceeds of the assets.
In May, Ukrainian Justice Minister Denys Malyuska said at an event organised by LB.ua that one of the key decisions on compensation to Ukraine from Russia could be made this June at the Group of 7 summit of leaders. According to him, this may not be a final decision, but only a political one. Malyuska believes that a decision on full confiscation is unlikely to be made at this time.