WEB DESK: Leaders of the Group of Seven (G7) major democracies reached a preliminary agreement on Thursday to provide $50 billion in loans to Ukraine, funded by interest from Russian sovereign assets frozen after Moscow’s 2022 invasion.
This political agreement was a highlight of the opening day of the annual G7 summit in southern Italy, attended by Ukraine’s President Volodymyr Zelenskiy for the second consecutive year.
President Zelenskiy is set to sign a new, long-term security agreement with US President Joe Biden on Thursday, as well as with Japan, another G7 member.
Many G7 leaders face challenges at home but are committed to making a global impact, also aiming to counter China’s economic influence.
Italian Prime Minister Giorgia Meloni addressed her G7 guests as their discussions began in a luxury resort in Puglia, saying, “There is a lot of work to be done, but I am sure that in these two days, we will be able to have discussions that will lead to concrete and measurable results.”
The G7’s plan for Ukraine involves a multi-year loan using profits from about $300 billion in seized Russian funds. The technical details are expected to be finalized in the coming weeks, according to a G7 diplomatic source.
A senior US official indicated that the United States had committed up to $50 billion but that amount might decrease as other countries join the effort. The goal is to ensure the plan’s longevity regardless of future changes in G7 leadership, addressing concerns about potential shifts in US policy if Donald Trump wins the presidential election in November.
While Meloni enjoys a strong position after the recent European elections, other G7 leaders, including those from the United States, Japan, France, Germany, Britain, and Canada, are dealing with significant domestic issues.
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G7 leaders also voiced concerns about the Israel-Lebanon border situation and supported US efforts to secure a ceasefire in Gaza. They urged Israel to avoid a full-scale offensive in Rafah, adhering to international law.
Additionally, the G7 expressed unanimous concern over China’s industrial overcapacity, which they believe is distorting global markets, and emphasized their commitment to helping African nations develop their economies.
President Biden faces a tough re-election campaign in November, and British Prime Minister Rishi Sunak appears likely to lose in the upcoming national election. French President Emmanuel Macron dissolved parliament after his party’s poor performance in the European vote.
Despite these challenges, the leaders showed unity as they greeted Meloni at the Borgo Egnazia resort. This year, the G7 has included a large number of external participants, including Pope Francis, who will deliver a keynote speech on Artificial Intelligence on Friday.
Leaders from major regional powers such as India, Brazil, Argentina, Turkey, Algeria, and Kenya have also been invited to the summit in Puglia.
Although the summit runs until Saturday, many G7 leaders, including Biden, will depart on Friday night, leaving the final day for bilateral meetings and a closing press conference by Meloni
