Group of Seven leaders are set to reach a political agreement to provide Ukraine with $50 billion of aid using the profits generated by frozen Russian sovereign assets, according to an Elysee official.
However, the technical details of a deal will need to be finalized after a G-7 leaders’ summit taking place in Italy this week — meaning that it could be a while for a final agreement to be concluded, said the French official, who spoke on condition of anonymity.
The French view followed comments by the US on Tuesday that leaders had all but reached a political deal. People familiar with the negotiations in both countries said the aim would be to disburse the funds by the end of the year.
G-7 participants cautioned that beyond any agreement — which is expected to be one of the main deliverables of the summit — some remaining issues on how it will work are complicated.
Officials on both sides of the Atlantic have for months been discussing how to use the profits generated by the about $280 billion in frozen Russian central bank funds, most of which lies immobilized in Europe.
The proceeds from the frozen assets are estimated to be worth between €3 billion to €5 billion annually. The EU has already agreed to provide Ukraine the profits twice a year, but the US has been urging G-7 allies to find ways to frontload the support in order to provide Kyiv with more immediate support.
Complex issues that will need to be ironed out include figuring out how to structure any loans to Ukraine, how risks are shared among allies and ensuring that the assets remain frozen for years.
US National Security Advisor Jake Sullivan told reporters during a gaggle aboard Air Force One on Wednesday that discussions were continuing and making good progress.
“What we are working toward is a framework that is not generic — that is quite specific, in terms of what it would entail,” he said. “But of course, the core operational details of anything that is agreed in Italy will then have to be worked through and the leaders would give direction to the experts to work that through on a defined time frame,” Sullivan added.