G7 leaders have finalized details on a $50 billion loan to aid Kiev, backed by profits from Russia’s sovereign assets frozen after its invasion of Ukraine, according to a statement released Friday (October 25).

Leaders of seven wealthy democracies said they had “reached consensus on how to distribute” nearly $50 billion in loans, aiming to start distributing funds by the end of this year.

“Loan proceeds will be distributed through multiple channels to support Ukraine’s budget, military and reconstruction assistance,” G7 leaders said. he added.

The announcements come as world financial leaders gather in Washington this week for meetings hosted by the International Monetary Fund and the World Bank.

The statement said finance ministers “agreed on a technical solution that will ensure consistency, coordination, fair distribution of loans and solidarity among all G7 partners.”

“We will not give up our determination to give Ukraine the support it needs to prevail,” the leaders said. he added. They called on Moscow to end the war and pay for the damage done to Ukraine.

$20 billion US support

This week, US President Joe Biden said that as part of the G7 package, the US would provide Ukraine with a $20 billion loan to be repaid from interest earned on Russia’s immobilized assets. This aims to now support Ukraine “without burdening taxpayers.”

“Our efforts make it clear: Oppressors will be held accountable for the harm they cause,” Biden said. he said.

US Treasury Secretary Janet Yellen signed a statement on Wednesday with her Ukrainian counterpart Sergii Marchenko stating their intention to enter into the loan. The move also pledged that no new U.S. or Ukrainian tax dollars would be the source of refunds.

With a little more than a week left until the country’s presidential election on November 5, economic concerns continue to be on the minds of US voters. Washington aims to provide at least $10 billion in loans for economic support; The other half is expected to receive this loan. form of military aid. However, this will require additional permission from Congress.

US officials said the remaining $30 billion in loans will come from G7 partners, including the European Union, Britain, Canada and Japan.

“We have once again made clear our unwavering determination to stand by Ukraine, no matter how long it takes,” the G7 said in a statement on Friday. “Time is not on President (Vladimir) Putin’s side.”