The G7 still hasn’t agreed on a mechanism for using profits from Russian assets to help Ukraine.

At the G7 Summit in Apulia, Italy, on June 13-15, the leaders of the member countries hope to agree on using profits from Russian assets frozen in the West to provide Ukraine with budget support and help in recovery.

In May, G7 finance ministers reported progress on a deal, but diplomatic sources said “difficult technical discussions” were still ongoing. A diplomatic source from another G7 country expressed optimism that an agreement could be reached by next week. A German government source said Berlin was optimistic about the deal, but it would still have to be approved by the EU, which freezes the largest amount of Russian assets.

It will be recalled that the US proposal envisages that the G7 countries will provide Ukraine with a $50B loan, which will be repaid using the profits received from the frozen assets of the Russian Federation.

Instead, the EU has proposed an alternative proposal, which would provide a loan for Ukraine, using its €1.2T seven-year budget as security.