G7 leaders have agreed to use Russian assets that have been immobilized to facilitate a $50 billion loan for Ukraine. This loan is intended to address Ukraine's urgent financing needs.

The loan will be repaid using the windfall profits generated from the freezing of over $250 billion in Russian assets in Western nations after the invasion of Ukraine in February 2022. The United States has announced a $20 billion contribution to the loan, which will be disbursed in December. There are concerns about the potential impact of the upcoming U.S. elections on support for Ukraine.

The European Union, which holds the majority of the frozen funds, has committed to providing up to €35 billion, with a total expected allocation of $20 billion. The remaining $10 billion will be distributed among the United Kingdom, Canada, and Japan. The G7 ministers have confirmed that the funds will be allocated through bilateral loans starting on December 1, 2023, and continuing until the end of 2027. Each loan is expected to take effect no later than June 30, 2025, reflecting Ukraine's pressing financial requirements. The EU has also finalized its expedited process for contributing to the loan this week.