G7 leaders reach deal to provide Ukraine a $50 billion loan backed by Russian assets

BARI, Italy — President Joe Biden and his counterparts from the wealthiest democratic nations reached a deal Thursday to give Ukraine a $50 billion loan this year backed by frozen Russian assets, signaling a sustained commitment to beat back Russia’s invasion, U.S. officials said.

As Ukraine struggles to preserve its independence amid Russia’s assault, the money will go toward military aid, humanitarian support and reconstruction of the country, a Biden administration official said in a press briefing.

The U.S. is prepared to commit the entire $50 billion if necessary, but expects other nations will step forward and share the risk, the official said. The loan will be secured by interest flowing from about $300 billion in frozen Russian assets.

“How are we going to get repaid? Russia pays,” the official said.

The deal was to be officially announced Thursday during a summit meeting of the Group of Seven (G7) nations, advanced industrial democracies including Germany, Japan, France, the United Kingdom, Canada and Italy.

“There was a shared recognition by every G7 member that the situation on the battlefield remains difficult and that if the war continues, Ukraine is still going to have a large financial need next year and beyond,” the official said, speaking on the condition of anonymity.

Negotiations on the effort have played out since Russia launched its invasion in 2022, but political uncertainty may have given the talks renewed urgency. Biden faces a tough re-election campaign, and if he loses to Republican Donald Trump in November, there are no assurances the next administration would favor any more money for Ukraine.

“This summit is our best chance to act collectively, to close the gap by making Russia pay, not our