Leaders of the main democracies that make up the Group of Seven (G7) reached a preliminary agreement on Thursday to lend $50 billion to Ukraine using income from Russian sovereign assets that were placed on hold after Moscow invaded its neighbor in 2022.
The focal point of the first day of the yearly summit of G7 leaders, held in southern Italy and attended for the second year in a row by President Volodymyr Zelenskiy of Ukraine, was the political accord.
On Thursday, the president of Ukraine will sign a new, long-term security agreement with US President Joe Biden and another with Japan, a member of the G7.
While several of the G7 leaders are facing personal hardships, they are adamant about changing the global landscape and opposing China’s economic aspirations.
The G7 summit began in a posh hotel resort in the Puglia region of southern Italy. “There is a lot of work to be done, but I am sure that in these two days, we will be able to have discussions that will lead to concrete and measurable results,” Italian Prime Minister Giorgia Meloni told her guests.
The $300 billion in earnings from frozen Russian funds will be used to finance a multiyear loan to Ukraine, as part of the G7’s plan for the country.
In the upcoming weeks, the technical details will be finalized, a G7 diplomatic source said Reuters.
The insider, who wished to remain anonymous, predicted that the extra funds will come in by year’s end.
According to a top US official, the US had committed to contribute up to $50 billion, but if other nations confirmed their involvement, that sum would drop dramatically.
According to a person close to the negotiations, the goal of the agreement was to guarantee that it would continue for years to come regardless of who leads each G7 state. This was a response to worries that, should Donald Trump defeat Biden in November, he may show far less support for Kyiv.
After winning the weekend’s European elections, Meloni is riding high, but the leaders of the other six countries—the US, Japan, France, Germany, Britain, and Canada—are dealing with serious domestic issues that could jeopardize their position of power.
Middle East anxiety
According to a draft statement that will be made public after the summit, the G7 leaders also voiced their worries about the state of affairs along the Israel-Lebanon border and supported US efforts to secure a truce in the Gaza Strip.
They also demanded that Israel abstain from launching a full-scale offensive in the Gaza city of Rafah in the south, “in line with their obligations under international law.”
According to diplomats, Western countries were also in agreement about their concern over China’s industrial overcapacity, which they claim is distorting global markets, and their will to support African states in developing their economies.
Next year, the G7 might look quite different.
November will be a difficult month for Biden to win reelection, and British Prime Minister Rishi Sunak will almost certainly lose the national ballot the following month.
Sunday saw the dissolution of the French parliament by President Emmanuel Macron, following his party’s crushing defeat in the European elections.
At the gate to the Borgo Egnazia resort, where they would spend two days in sessions open to a number of other dignitaries, including Pope Francis, they all grinned warmly as they met Meloni in the scorching sun.
In an attempt to avoid coming out as an exclusive club, the G7 has welcomed a lot of outsiders this year. The pope, for example, will likely deliver a keynote address on Friday about the advantages and disadvantages of artificial intelligence.
The heads of some of the largest regional powers in the world, including Algeria, Kenya, Brazil, Argentina, Turkey, and India, have also been invited to Puglia.
The summit is supposed to last until Saturday, but many of the G7 leaders—including Biden—will depart on Friday night. As a result, the last day has been set aside for bilateral discussions with those leaders who are staying, as well as a last press conference from Meloni.
