The G7 nations have agreed on the structure of $50 billion (about €45 billion) in loans to Ukraine, with repayments to be funded by profits generated from frozen Russian assets abroad, the US government announced on Wednesday.
The decision to provide the loan was made at a G7 summit in June. However, there have been months of discussion about the contributions of each member country. The European Parliament on Tuesday approved a contribution from the EU that could reach up to €35 billion.
An agreement on the loan structure has now been reached. The United States will contribute $20 billion, which reduces the European Union’s share to an equivalent amount of €20 billion. The remaining $10 billion will be provided by the United Kingdom, Canada, and Japan.
In recent months, Washington has pressed the EU to adjust its sanctions regime. Currently, EU sanctions against Russia, including the freezing of Russian state assets, must be renewed every six months. This presents a risk that, without unanimous agreement among EU Member States, the assets could be released, jeopardising the loan repayment.
Hungary has vetoed proposals to extend the sanctions’ duration to three years. However, Washington has now indicated that the G7 has found a way to agree on the loan without requiring the EU to first amend its sanctions rules. “But we still urge for this adjustment,” said a US government source.
