The G7 will create a fund for Ukraine using income from frozen Russian assets.

Nikkei reported that the G7 plans to create a new fund to support Ukraine through grants, using future income from frozen Russian assets. The World Bank will administer the fund and be funded by contributions from the US, Britain, Japan, and other countries.

The fund will donate aid to Ukraine using these donations, and the country will not be obliged to repay the money. Income from frozen Russian assets will be used to repay the donated contributions. The US contribution to the fund will amount to $50B. The G7 leaders intend to reach an agreement on this issue at a summit in Italy that begins on Thursday.

In total, $300B in Russian assets have been frozen by the West, two-thirds of which are located in the EU, and a significant part of them is held by the Belgian clearinghouse Euroclear. Investment income retained by Euroclear will be used to provide funds for military and other support to Ukraine.