Live updates: Biden and Zelensky news conference at G7 summit

Group of Seven leaders have reached an agreement to loan money to Ukraine backed by the profits from frozen Russian investments, a senior US administration official confirmed Thursday, as the G7 met in Puglia, Italy.

“There was shared recognition here in Puglia by every G7 member that the situation on the battlefield remains difficult, and that if the war continues, Ukraine is still going to have a large financial need next year and beyond, and that this summit is our best chance to act collectively to close the gap,” the senior official said.

The official added that it’s “only fair that we close the gap by making Russia pay, not our taxpayers, and we found a way to do so that respects the rule of law in every jurisdiction.”

The agreement is the product of years of negotiation complicated by a patchwork of jurisdictional laws that required the direct involvement of President Joe Biden and national security adviser Jake Sullivan, among other top US officials. 

It will take some time before Ukraine begins to receive this money, but the US official said the effort would “move with urgency” and the commitment remains “to be ready to disperse $50 billion this calendar year.”

If the loan is dispersed by the end of 2024, it would ensure the money would get to Ukraine before a potential change in US presidents. Biden is facing off against former President Donald Trump in November’s US presidential election, and Trump has refused to commit to sending additional funding to Ukraine.

“The next steps are to enshrine the communiqué commitments with the EU 27, the full membership, then we need to write contracts between the lenders … the recipient, which is Ukraine, and the intermediaries,” the official said.

From there, there will be an agreement on a dispersal schedule.