BORGO EGNAZIA, Italy (AP) — The United States and European countries have agreed to lock up sanctioned Russian assets until Moscow pays reparations for its invasion of Ukraine, a senior U.S. official said Thursday. The move clears the way for leaders to announce a $50 billion loan package for Kyiv at the Group of Seven summit, where President Joe Biden is set to sign a security agreement with Ukraine’s Volodymyr Zelenskyy.
The highly anticipated agreement will leverage interest and income from the more than $260 billion in frozen Russian assets, largely held in Europe, to secure a $50 billion loan from the U.S. and additional loans from other partners. The first disbursements will be made this year, but it will take time for Ukraine to use all the money, the official said. The official spoke on the condition of anonymity to preview the agreement, which will be included in the G7 leaders’ communique on Friday.
Ukraine will be able to spend the money in several areas, including for military, economic and humanitarian needs and reconstruction, the official said.
The leaders’ statement will also leave the door open to confiscating the Russian assets entirely, for which the allies have yet to secure the political will, largely citing legal and financial stability concerns.
Biden will meet on Thursday with Zelenskyy to discuss a bilateral security agreement between the U.S. and Ukraine, as the international group of wealthy democracies has been looking for new ways to bolster Ukraine’s defenses against Russia. They planned a joint news conference afterward.
The agreement on how to use the frozen Russian assets to benefit Ukraine comes several months after the White House broke through a logjam in Congress that stalled approval of some $60 billion in U.S. aid for Ukraine. The delay gave Russia time to make up ground on the battlefield.
Earlier Thursday, Biden’s national security adviser, Jake Sullivan, described the security pact as a “real marker” of the U.S. commitment to Ukraine, “not just for this month and this year, but for the many years ahead.”
Zelenskyy, on social media, said the document is “unprecedented, as it should be for leaders who support Ukraine.”
Sullivan said the agreement would not commit U.S. troops directly to Ukraine’s defense against Russia’s invasion. That is a red line drawn by Biden, who does not want to have the U.S. pulled into a direct conflict with nuclear-armed Moscow.
Scores of countries and organizations are set to meet over the weekend in Switzerland to discuss peace for Ukraine. Biden is not scheduled to attend the summit, and that has disappointed Zelenskyy. Vice President Kamala Harris will represent the U.S. instead while the Democratic president attends a political event in Los Angeles to raise money for his reelection bid.
Zelenskyy recently said the summit needs Biden’s participation because other leaders value the U.S. viewpoint. He said Biden’s absence “will be only an applaud to Putin, a personal applaud to Putin.”
The G7 summit opened Thursday in Italy’s picturesque Puglia region in the south with leaders meeting in private as they discussed the war in Gaza, support for Ukraine and other mutual concerns. Biden arrived late Wednesday.
The informal group of industrialized democracies — the U.S., Britain, Canada, France, German, Italy and Japan, plus European governing bodies — meets annually. Italy holds the rotating presidency this year, and Prime Minister Giorgia Meloni is hosting her counterparts.
The trip is Biden’s second outside the U.S. in as many weeks; he was in France last week for a state visit and ceremonies commemorating the 80th anniversary of the D-Day landings in World War II.
