G7 leaders agreed Thursday at a summit in Italy on a new $50 billion loan for Ukraine using profits from frozen Russian assets, a US official said.
"We have political agreement at the highest levels for this deal," a senior Biden administration official said on condition of anonymity.
"And it is $50 billion this year that will be committed to Ukraine."
US President Joe Biden and the leaders of Italy, Britain, France, Germany, Canada and Japan on Thursday began two days of talks in Puglia, southern Italy.
Increasing support for war-torn Ukraine was top of the agenda, with President Volodymyr Zelensky joining the G7 leaders for a special session Thursday.
The EU agreed earlier this year to use the profits from the interest on Russian central bank assets frozen by Western allies after Moscow's February 2022 invasion of its neighbour to help Kyiv.
But the idea at the G7 is to use this money to provide more and faster help through a massive upfront loan.
The loan would be eventually repaid with the future profits – although there is a risk that the funding stream dries up if the assets are unfrozen, for example in the event of a peace deal.
Global turmoil
The summit comes at a time of extraordinary global turmoil.
Apart from the conflict in Ukraine, the Hamas-Israel conflict is raging and economic tensions are rising between China and Western countries.
Many G7 countries are also in political flux. Everyone in Puglia is aware this could be Biden's last G7 summit if he loses to Donald Trump in November US elections.
Britain's Rishi Sunak is tipped to be ousted in July 4 elections, while France's Macron and Germany's Olaf Scholz are both under pressure after gains by the far right in EU elections last weekend.
By contrast, meeting host Giorgia Meloni, Italy's prime minister, is riding high after her far-right party topped European Parliament elections last weekend.
Key topics to come:
- Middle East conflict: The G7 is expected to endorse US President Joe Biden’s ceasefire proposal for Gaza, though no harsh criticism of Israel’s bombardment is expected.
- China relations: The summit will address concerns about China's industrial overcapacity, with the US pushing for a tough stance. There may also be discussions on sanctions against Chinese banks aiding Russia in evading sanctions.
- Africa and energy: Italy's Prime Minister Georgia Meloni aims to expand the country's Mattei Plan that positions the country as an energy hub between Europe and Africa, promoting growth in Africa to curb immigration.
- Global minimum tax: Italy continues to push for an accord on a global minimum tax for multinationals, although a final deal is not expected by June.
- Artificial intelligence: G7 leaders previously discussed AI at last year’s Hiroshima Summit, when they unveiled the AI Principles and Code of Conduct.
(with AFP)
