Group of Seven leaders have reached a deal to lend money to Ukraine backed by profits from frozen Russian investments, a senior US administration official confirmed Thursday, as the G7 met in Puglia, Italy.
The official added that it is “fair that we close the gap by making Russia pay, not our taxpayers, and find a way to do it that respects the rule of law in all jurisdictions.”
The agreement is the product of years of negotiations complicated by a patchwork of jurisdictional laws that required the direct participation of President Joe Biden and national security adviser Jake Sullivan, among other senior US officials.
What happens next: The leaders will soon issue a joint statement on the decision.
It will be some time before Ukraine begins receiving this money, but the US official said the effort will “move forward urgently” and the commitment remains to “be ready to distribute $50 billion this calendar year.”
If the loan is distributed by the end of 2024, it would ensure that the money reaches Ukraine before a possible change of American presidents. Biden faces former President Donald Trump in November's US presidential election, and Trump has refused to commit to sending additional funds to Ukraine.
“The next steps are to enshrine the communiqué commitments with the EU 27, all members, then we need to draw up contracts between the lenders… the recipient, which is Ukraine, and the intermediaries,” the official said.
From there, an agreement will be reached on a dispersion schedule.
