These are the details of the G7’s agreement to loan Ukraine $50B.

The G7 countries have agreed on a loan structure based on the respective size of their economies that will provide Ukraine with about $50B in new aid, which will begin to arrive by the end of the year. According to Bloomberg, the G7 countries will issue loans to Ukraine, which will be repaid with the profit generated by the $280B in frozen assets belonging to the Russian Federation, most of which are in Europe. Revenues from these assets are estimated at €3-5B per year.

The agreement is expected to provide critical support to Ukraine in the medium term and help cover its financing needs until 2025 and beyond. Loans will be structured differently depending on the internal procedures of each participant, and each will personally bear the risk of the frozen assets bringing less profit. The allies will agree on the final technical details after the summit in Italy.

Ukraine can use these funds to support defense, economy, and recovery.

This step sends a signal to Russia that the G7 countries are ready to support Ukraine in the long term.