G7 Leaders Agree on Ukrainian Loan Backed by Frozen Russian Asset Funds

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Facts

  • Heads of state from the Group of Seven (G7) countries have agreed to use the profits from frozen Russian assets to fund Ukraine, according to sources who briefed the media on Thursday.[1]
  • Under the agreement, Ukraine would receive a mostly US-backed loan of $50B by the end of the year, which would then be paid for from the interest generated on immobilized Russian central bank assets that total an estimated $260B.[2]
  • Reports prior to the summit suggested there remained a gulf of difference between the US and Europe. EU countries, namely France and Germany, were reportedly unhappy about the US insistence that Europe bears the risk if the loan was not repaid.[3]
  • On top of backing most of the loan, US Pres. Joe Biden on Thursday also signed a 10-year security pact with Ukraine. Japan, the only Asian country in the G7, has also agreed to give Ukraine $4.5B.[4]
  • Canadian Prime Minister Justin Trudeau, whose country is also in the G7, reportedly pledged $5B for Ukraine. Trudeau is scheduled to meet with Zelenskyy and G7 leaders on Thursday.[5]

Sources: [1]Ft, [2]Associated Press, [3]Politico, [4]New York Times and [5]CP24.

Narratives

  • Pro-establishment narrative, as provided by France 24. The purpose of this agreement is to give Ukraine the resources to continue fending off Russia's aggression and rebuild after the war is won. While some world leaders, even in the West, have been half-hearted in their support for Ukraine, the G7 on Thursday showed that it's still ready to defeat Putin militarily and make him pay to rebuild what he's destroyed.
  • Pro-Russia narrative, as provided by TASS. This is banditry and theft — pure and simple. Using revenue from Russia's frozen assets to fund Ukraine in the conflict is yet another example of the West degrading its own standards and violating its commitments to international law. The saddest part is that Europe knows this will backfire economically, as Russia will be forced to respond with its own measures.

Predictions