Group of Seven (G7) leaders affirmed their decision to make available around $50 billion to Ukraine by using frozen Russian assets as they wrapped up their two-day summit in Italy on June 14.
The leaders said in their final communique that by leveraging "the extraordinary revenues" of Russian assets frozen in Europe, they are sending "an unmistakable signal" to Russian President Vladimir Putin.
"We are working together and with others to address the pressing challenges of our time," the G7 leaders said in the communique, noting their solidarity with Ukraine as well as support for a deal that would lead to an immediate cease-fire and release of hostages in Gaza, investment in sustainable infrastructure in Africa, and commitments to address climate change and migration.
A senior U.S. administration official, meanwhile, provided details about the sovereign-assets deal, telling reporters on a conference call on June 14 that the proceeds will flow to Ukraine through multiple channels.
Every G7 country -- Britain, Canada, France, Germany, Italy, Japan, and the United States -- will do its part in the deal, the senior U.S. official said.
The United States has committed to loan up to $50 billion while Canada has committed to loan $5 billion, the official said, adding that the European Union and Japan were considering whether to join the loan syndicate.
As part of its deliberations, the Europe Union is currently discussing a loan that would be up to $25 billion, the official said.
Britain is considering guaranteeing repayment of loans, while the European Union is expected to provide the income generated from some $280 billion in frozen Russian foreign exchange reserves in the bloc, most of it in Belgium.
Those assets, which are generally invested in short-term government bonds of Western governments, are generating income amounting to a few billion dollars a year.
The senior U.S. administration official said Ukraine will not have to pay back anything and the loan would not change Ukraine's debt-to-GDP ratio, which financial agencies like Moody's use to assign ratings to government debt.
The lenders will be repaid from the profits accrued on the frozen Russian assets or through the countries that guarantee the loans.
Before the EU can take part in the loan syndicate or disperse the profits it must get all 27 members to commit to the continued freeze on the Russian reserves.
"We fully expect the EU27 will meet this moment [and] authorize continued immobilization of Russia’s sovereign assets," the senior U.S. official said, citing comments made by the leaders of Italy, France, and Germany as well as senior EU officials as encouraging.
G7 leaders turned their attention on June 14 to other matters, including discussions on migration, artificial intelligence, economic security, and the Indo-Pacific region, stressing their determination to meet global challenges "at a crucial moment in history."
Pope Francis also became the first pontiff to address a G7 summit, delivering a speech on artificial intelligence.