After months of debate over how to use the profits generated by frozen Russian assets, the plan is likely to be approved by the G7 leaders at this week's summit in Italy, while the billions in aid are expected to start flowing to Kyiv by the end of the year.
The loans to Ukraine will be repaid from the profits of some $280 billion in frozen funds, most of which are in Europe. The deal is aimed to provide critical medium-term support to the war-torn country and help meet its financing needs through 2025 and beyond.
Under the arrangement to be signed in Italy, the United States, the European Union, and other participants will provide loans, and income generated from the frozen assets will be used to repay the money.
According to Bloomberg sources, each participant will structure their loans differently according to their internal procedures, and they will bear the risks if the assets generate less income than expected.
The final technical details of the agreement will be worked out after the G7 summit. The aid may be used to support Ukraine's defense, economy, and reconstruction. However, the specific details of the agreement may still change during the summit.
From the perspective of the G7 countries, this move signals their readiness to support Kyiv in the long term, as the war with Russia shows no signs of abating.
Repayment will depend on the assets remaining frozen for several years until their profits can repay it. G7 leaders have consistently stated that the assets will remain frozen until Russia agrees to contribute to Ukraine's reconstruction.
"I think we will resolve the main issues, but some details still need to be worked out by experts on a certain timetable... I expect it to happen that way," said US National Security Advisor Jake Sullivan.
Earlier, on June 11, Politico reported a significant rift between the U.S. and Europe that could delay approval of the loan by G7 leaders at the June 13-15 summit in Italy, with a final deal likely to be delayed until the fall.
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Read the original article on The New Voice of Ukraine
Section: Nation
Author: Андрій Журба
