News Desk

The G7 has agreed to use frozen Russian assets to raise $50bn (£39bn) for Ukraine to help it fight invading Russian forces.

Although Moscow has warned “extremely painful” reprisal measures, US President Joe Biden said it was only another message to Russia “that we’re not backing down.”

The funds are viewed as a longer-term way to bolster Ukraine’s economy and war effort, even if they are not expected to arrive until the end of the year.

In addition, during the G7 meeting in Italy, Mr. Biden and Ukrainian President Volodymyr Zelensky inked a bilateral security agreement that would last ten years and be hailed as “historic” in Kyiv.

Although Washington is not obligated to send soldiers to fight for its ally, the pact does envision US military and training assistance to Ukraine.

After Russia invaded Ukraine on a large scale in 2022, the EU and the G7 froze assets valued at over $325 billion.

According to the G7 proposal, the $3 billion would be utilized to settle the yearly interest on the $50 billion loan that the Ukrainians obtained from foreign markets.

President Biden declared that the $50 billion loan will “put that money to work for Ukraine and send another reminder to [Russian President Vladimir] Putin that we’re not backing down” during a joint news conference held at the summit’s location in Puglia, southern Italy.

“Mr. Putin cannot wait us out, he can’t split us, and we’ll remain with Ukraine as long as they prevail in this war,”

the US president emphasized.
President Zelensky expressed gratitude to his allies, Americans and others, for their continuous support.

“We have signed the strongest agreement within Ukraine and the US since our independence [in 1991],”

he remarked, making reference to the recently signed security accord. It’s a very historic day.

The $50 billion loan agreement was praised by other G7 leaders as well; UK Prime Minister Rishi Sunak called it “game changing”.