Photo: Russian soldiers on the battlefield between Russia and Ukraine. /AP

[Ta Kung Pao News]According to Reuters: The G7 summit took place on the 13th, and the leaders of the Group of Seven reached a framework agreement on the same day to provide Ukraine with a loan of US$50 billion, which will come from the proceeds of frozen Russian sovereign assets. Russia warned that this move is equivalent to a “criminal act” and will take “extremely painful retaliatory measures” to the West.

Most of the $50 billion in aid approved by the G7 will be provided in the form of a U.S. government loan. According to Russian officials, of the approximately $280 billion in frozen Russian overseas assets, only $5 billion to $6 billion are in the United States, while more than $220 billion are frozen in the European Union. These funds are expected to generate at least $3 billion in interest income each year. The $50 billion loan will be repaid with this income over a period of 10 years or more, or until Russia pays its reparations.

The funds are expected to arrive by the end of this year, but the technical details of the agreement have not yet been finalized. Many European countries are still concerned about using Russia’s frozen assets, worrying that Ukraine will eventually find it difficult to repay the loan, or that the frozen assets will not generate that much income, and are also worried that Russia may take countermeasures.

A person familiar with the negotiations said the deal needed to be ensured to last for years, regardless of who was in power in any of the G7 countries, amid concerns that U.S. support for Ukraine would be significantly reduced if Trump won the U.S. election this year.