Russia pledges $50 billion aid to Ukraine from seized assets
G7 countries have agreed to provide $50 billion in aid to Ukraine from Moscow's seized assets as part of efforts to confront Russia. The news was reported by the BBC.
Under a ten-year bilateral agreement signed by Zelensky and Biden, the aid will be used in Ukraine financed by a $50 billion loan. Biden stated during a joint press conference at a top summit in southern Italy on Thursday that the loan will be used in Ukraine's work and Putin will receive the message that "we're not backing down."
Biden emphasized that Putin would not be able to create divisions among us. As long as Ukraine does not succumb to Russia, we will stand by them, he added.
US President Joe Biden stated that it had been agreed to make Russia reconsider through this, stating, "We are not stepping back."
Hopes are high that the end of the year will see this obtained without any setbacks. This move is seen as a long-term solution to improve Ukraine's war and economy.
In addition to the G7 summit in Italy, Ukrainian President Volodymyr Zelensky and Joe Biden have signed a 10-year bilateral security agreement, which has been described as 'historic'.
After Russia's aggression against Ukraine in 2022, the G7 countries, alongside the European Union, have seized about $325 billion worth of Russia's assets.
From these Russian assets, Ukraine earns nearly $3 billion annually.
According to the G7 plan, Ukraine will receive a $50 billion loan from the international market. The interest of $3 billion per year will be used to repay the loan.
Other G7 leaders have welcomed the $50 billion loan agreement. UK Prime Minister Rishi Sunak called it 'game-changing'.
Most of Russia's seized assets are held in Belgium by the Central Bank of Russia.
According to international law, countries cannot give those assets directly to Ukraine from Russia.
However, the issue is a bit complex. Because if Russia gains the right to use the frozen assets in the future, repaying the G7's loan to Ukraine could become complicated.
