Scholz on the $50 billion deal for Ukraine: ‘A historic step and a clear signal to Putin’

German Chancellor Olaf Scholz stated that the G7’s plans to provide Ukraine with about $50 billion in financial support, using frozen Russian assets, are a clear signal to Kremlin leader Vladimir Putin, Reuters reported.

“This is a very clear commitment that should inspire the Ukrainians to do whatever is necessary to defend their independence and sovereignty. And it is also a clear signal to the Russian president that he cannot just sit back and hope that fiscal problems in a country that supports Ukraine will one day allow him to win this war.”

German Chancellor Olaf Scholz

Olaf Scholz said that Putin was wrong to think that international support for Ukraine would diminish over time. “This is a very historic step that we are taking today,” Scholz emphasized.

The G7 plan for Ukraine, announced on Thursday by Italian Prime Minister Giorgia Meloni, is based on a multi-year loan to Kyiv using the proceeds of about $300 billion in confiscated Russian funds.

Meloni said that the G7 had reached “a political agreement to provide additional financial support to Ukraine in the amount of about $50 billion by the end of the year through a loan facility that can be repaid using the excess profits from Russian assets immobilized in our jurisdictions.”

She emphasized that such support would be provided not through the confiscation of the Russian assets themselves but through the use of profits from these assets that accumulate over time.

“Today’s step is a fundamental political step that will now have to be worked out quickly from a technical point of view, clearly taking into account the regulatory framework already adopted at the European Union level, but it is an unexpected result of which I am particularly proud,” the Italian Prime Minister stated.

This agreement refers to the U.S. proposal, which stipulates that the G7 will provide Ukraine with a $50 billion loan to be paid from the proceeds of Russia’s frozen assets.

The technical details will be finalised in the coming weeks, with the new cash expected to reach Ukraine by the end of 2024 with contributions from all G7 nations – the US, Canada, the UK, France, Germany, Japan and Italy.