Conflict in Ukraine - Russia to provide financial support for Ukraine following G7 discussions.
Ukraine receives a huge support package from the Group of 7 (G7) nations to help defend against Russia. According to reports from the German Press Agency, the leaders of the G7 countries agreed at a meeting in Italy to provide a credit package worth around $50 billion (nearly €47 billion) by utilizing the interest from frozen Russian state assets.
Ever since Russia invaded Ukraine, there have been about $280 billion (around €260 billion) in Russian central bank funds held as frozen assets in Western nations, according to US government estimates. The majority of these funds, approximately €210 billion, are within the EU. The frozen Russian assets generate billions in annual interest, which will be utilized to aid Ukraine moving forward.
There have been intense discussions within the G7 about using these funds. At first, the US government suggested using both the interest and the frozen assets for Ukraine's benefit. However, European nations were opposed to this idea. As a result, a billion-dollar package emerged as a compromise, which would only be secured by the interest on the frozen Russian funds.
US Treasury Secretary Janet Yellen outlined in a New York Times op-ed that this loan for Ukraine would be repaid over time with interest from the frozen Russian assets. This loan will provide Ukraine with the necessary resources for defense and reconstruction, effectively paying for it using the earnings from Russian President Vladimir Putin's own fortune. Yellen noted that this package would also convey a clear message to Putin that Ukraine's allies will remain loyal to Kiev in the long run.
The Pope Invited to the G7 Summit
Italy's right-wing Prime Minister, Giorgia Meloni, welcomes her guests at the luxurious Borgo Egnazia resort, which has 28 villas and 63 suites/rooms in the traditional Apulian style. The Pope is set to join the gathering as well. This is the first time a pontiff will participate in a G7 summit. The head of the Catholic Church is scheduled to discuss the topic of Artificial Intelligence.
G7 Summit Transitions to Ukraine Reconstruction Conference
The G7 summit then transitions into a two-day reconstruction conference for Ukraine in Berlin. On Saturday, Scholz and Zelenskyy will continue their journey to the Ukraine Peace Conference in Switzerland. According to the Swiss government, approximately 40 heads of state and government have registered so far. Invitations were sent to close to 160 people, with additional high-ranking government officials from over 40 other countries anticipated to be in attendance.
