The G7 nations have agreed to use frozen Russian assets to raise $50 billion for Ukraine’s war effort against Russian forces.
US President Joe Biden said the move shows Russia that “we’re not backing down,” while Russian President Vladimir Putin called it “theft” that “will not go unpunished.”
The G7 plan uses interest generated by frozen Russian assets to pay off the annual interest on the loan.
Ukrainian President Volodymyr Zelensky hailed the deal as “historic” and thanked his allies for their support.
The US and Ukraine also signed a 10-year security deal, which includes military and training aid but does not commit the US to send troops.
President Biden said the deal shows Putin that “he cannot wait us out, he cannot divide us, and we’ll be with Ukraine until they prevail in this war.”
President Zelensky added that the deal is “truly historic” and the “strongest agreement” since Ukraine’s independence in 1991.
The loan is seen as a long-term solution to support Ukraine’s war effort and economy, but it is unlikely to force a Russian U-turn on the war.
President Putin vowed that the move “would not go unpunished,” and Russia has threatened to respond if Western nations seize its funds.
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