G7: an agreement reached to disburse 50 billion dollars for Ukraine

G7 leaders meet this week in Italy in a context of strong international tensions with the wars in Ukraine and Gaza, and political turbulence in the United States and Europe. Italian Prime Minister Georgia Meloni opened the summit.

“The G7 is not a closed fortress that must defend itself against someone but rather an offer that we make to the world of values ​​that we can share” said Giorgia Meloni during her inaugural speech.

Russian assets frozen

On the agenda in particular: the signing of a bilateral security agreement between the United States and Ukraine, which would allow the use of interest earned on frozen Russian assets to support Kyiv’s war effort. This must be signed by Volodymyr Zelensky and Joe Biden.

For months, Western leaders were divided on how to give Kyiv access to part of the profits generated by frozen Russian assets for two years. In total, $300 billion from the Russian Central Bank was made inaccessible around the world. Some states – such as Germany and even France and Italy – are concerned about the legal consequences, and even the stability of the European market, in the event of outright seizure of these sums.

Questioned last week in France, the American president Joe Biden assured that he had found a solution. The United States’ proposal is to provide a $50 billion loan to Kyiv itself by the end of the year which would be reimbursed thanks to the profits generated by Russian assets in Europe.

US President Joe Biden also added that Washington would not commit troops to the direct defense of Ukraine.

The technical and legal details of these commitments still need to be resolved. Because if Russian assets are ever thawed, the windfall profits can no longer be used to repay the loanwhich will require a burden-sharing agreement with other countries.

Elections are due to take place this year in several G7 countries, and global security issues are among the key issues in the vote.