Ukraine to Receive $50B in Loans From US and G7 From Frozen Russian Funds

The White House announced Wednesday that the Group of Seven was nearing a deal to provide Ukraine with $50 billion in loans.
Backed by profits from frozen Russian assets, these funds are aimed at supporting Ukraine’s defense and economy as it continues to fend off Russia’s invasion.
The G7’s decision to back the $50 billion loan comes after months of negotiations on how to legally use the profits from frozen Russian assets without seizing the assets outright. This method prevents potential legal challenges from Russia or unintended consequences on global markets​.
Leaders of the collective nations—Canada, France, Germany, Italy, Japan, the United Kingdom and the United States—agreed earlier this year to proceed with the plan.
U.S. Treasury Secretary Janet Yellen said the historic move would not involve American taxpayers.
“We’re very close to finalizing America’s portion of this $50 billion loan package,” Yellen confirmed at a recent news conference, stressing that the entire loan would be repaid with Russian asset earnings​.
The U.S. plans to contribute $20 billion, while the other members provide the remaining $30 billion.
Once finalized, the move would mark the first time an alliance of this kind has frozen an actively militant country’s assets and used the profits to aid the victim.
“To be clear, nothing like this has ever been done before,” said Daleep Singh, the White House deputy national security adviser​ on international economics.
“Never before has a multilateral coalition frozen the assets of an aggressor country and then harnessed the value of those assets to fund the defense of the aggrieved party all while respecting the rule of law and maintaining solidarity,” he continued.
The U.S. contribution to the loan would be divided between economic and military assistance for Ukraine, Singh said. He added that more details would be finalized during the G7 finance ministers’ meeting this week in Stresa, Italy​​.
The payments are set to be made in stages until the end of 2025.
Ukrainian officials are expected to decide how best to use the funds, and Kyiv has emphasized the need for rapid financial support to bolster its economy and military efforts.
Most of the assets are held within the EU, and some G7 nations have expressed concerns about the legality of using Russian funds, about $260 billion of which were seized.
To ensure the loan’s security, the EU intends to continue freezing the assets long term, even with the need for semiannual renewals. Yellen said these measures would ensure U.S. taxpayers wouldn’t be left responsible for repaying the loan​.
The legal framework surrounding the asset freeze has raised tensions.
Representatives from Europe’s contributors are worried about potential Russian retaliation.
In the European Parliament, the vote passed with 518 votes in favor, 56 against and 61 abstentions.
While some leaders remain hesitant to confiscate the entire amount, many see this as a critical opportunity to leverage profits without risking broader financial consequences​.
Despite this, their priority remains clear: strengthening Ukraine’s military capabilities and helping to rebuild its damaged infrastructure.
“Russia must pay for attacking Ukrainians and brutally destroying the country’s infrastructure, cities, villages, and homes,” said Karin Karlsbro, a Swedish member of the European Parliament.
“The burden of rebuilding Ukraine will be shouldered by those responsible for its destruction, namely Russia,” she added.
Some of Russian President Vladimir Putin’s closest international partners seem to agree.
At this week’s BRICS conference, he faced direct calls from countries asking for de-escalation and a greater role in resolving the conflict.
This article includes reporting from the Associated Press.