Washington: The Group of Seven (G7) has solidified a plan to provide a $50 billion loan package to Ukraine, funded through profits earned from Russian sovereign assets that were frozen after Russia’s invasion of Ukraine.

The G7, which comprises some of the world’s wealthiest democracies, reached a consensus on the distribution and administration of the loan and aims to begin disbursing funds before the end of the year, according to a statement released on Friday.

The G7's collective statement emphasized that the loan will be channeled through multiple streams, supporting Ukraine’s budget, military needs, and extensive reconstruction efforts. This announcement follows a series of meetings in Washington, D.C., where financial leaders from the International Monetary Fund (IMF) and World Bank convened to address Ukraine’s urgent economic requirements amidst ongoing conflict.

In line with the G7’s framework, finance ministers agreed on a technical plan to ensure equitable distribution, operational coherence, and solidarity across all member nations. The G7 leaders reiterated their commitment to support Ukraine’s resilience and independence, calling on Russia to end the conflict and assume responsibility for damages caused by the war.

US Pledges $20 Billion in Support

As part of the broader G7 initiative, U.S. President Joe Biden announced that the United States would contribute $20 billion of the total loan package, funded specifically by interest accrued on Russian assets. This method is intended to prevent additional financial burdens on taxpayers while underscoring a principle of accountability. “Our efforts make it clear: tyrants will be responsible for the damages they cause,” Biden remarked, underscoring the collective resolve among G7 nations to support Ukraine and uphold democratic values.

This initiative highlights the G7’s commitment to leveraging economic measures and global cooperation to counter authoritarian actions while rallying behind Ukraine’s economic stability and long-term reconstruction efforts.