G7 Leaders Agree on $50 Billion Loan for Ukraine

At the G7 summit in Italy, leaders from member countries agreed to provide Ukraine with a $50 billion loan to purchase weapons and start rebuilding its damaged infrastructure. This financial support comes at a pivotal moment as Russia gains momentum on the battlefield.

The loan will be financed using the interest accrued on nearly $300 billion in frozen Russian assets, primarily held in European banks. U.S. Treasury Secretary Janet Yellen detailed the mechanics of the loan in an opinion piece in our section.

In addition to the loan, President Biden signed a 10-year security pact with Ukraine, underscoring a long-term U.S. commitment to the country and serving as a precursor to Ukraine's potential NATO membership. Japan also signed a 10-year security agreement with Ukraine, including a $4.5 billion pledge.

In a separate development, NATO defense chiefs convened in Brussels, pledging additional weapons to Kyiv and preparing for long-term military commitments to be announced at a summit in Washington next month. Notably, Hungary agreed not to participate in the military alliance’s war effort but also pledged not to obstruct it.