The leaders of the G7 countries are in agreement to lend Ukraine up to 50 billion dollars with frozen Russian assets as security. The agreement is confirmed by the host country, Italy.
Ukraine welcomes the support, while the aggressor Russia threatens to seize American assets.
The support for Ukraine, with seized Russian incomes as guarantee, was seen as one of the most important goals for the G7 meeting in Fasano, Italian Apulia.
The agreement concerns incomes and interest from Russian assets, worth more than 260 billion dollars, which have been locked in Europe and the USA. Among the assets are Russian central bank resources.
The G7 countries want the incomes from the frozen assets to function as security for the loan of approximately 520 billion kronor. The money is intended to be used for military purposes, but also for humanitarian and social efforts, as well as for the future reconstruction of Ukraine.
"Sends a signal"
Germany's Chancellor Olaf Scholz praises the agreement and calls the effort "historic".
A foundation has been laid so that Ukraine can receive compensation for everything the country needs in the short term, regarding weapons, but also for investments in reconstruction and the country's energy sector, said Scholz with direct reference to Moscow.
It sends a clear signal: Putin cannot just sit and wait.
Technical details regarding the release of the frozen assets still remain, but the G7 countries' representatives believe the practical knots can be untangled.
Ukraine's President Volodymyr Zelensky welcomes the announcement and expresses his appreciation for the G7 countries' continued support.
Russia: Painful response
The USA states that it could cover the entire loan amount, but that there is value in multiple countries participating, and that the USA's contribution will be lower if more G7 countries provide loans.
Russia's Foreign Ministry spokesperson Maria Zacharova says, according to CNN, that the support is an "illegal initiative" that threatens the balance of the financial market and will not "lead to anything good for the Western world".
There are sufficient European funds and assets in Russia for the inevitable response to be extremely painful for Brussels, she says.
President Vladimir Putin is also reported to have issued a decree allowing Russia to seize American assets.
