G-7 leaders strike deal on $68b loan to Ukraine

Ukrainian leader will also sign long-term security accord with US President

BARI, Italy - Leaders of the Group of Seven (G-7) major democracies agreed to an outline deal on June 13 to provide US$50 billion (S$68 billion) of loans for Ukraine using interest from Russian sovereign assets frozen after Moscow launched its invasion of its neighbour in 2022.

The political agreement was the centrepiece of the opening day in Italy of the annual summit of G-7 leaders, attended for a second successive year by Ukrainian President Volodymyr Zelensky.

The Ukrainian leader was expected to sign a new, long-term security accord with US President Joe Biden on June 13, as well as one with G-7 member Japan.

Many of the G-7 leaders are struggling at home but determined to make a difference on the world stage as they also seek to counter China's economic ambitions.

"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," Italian Prime Minister Giorgia Meloni told her G-7 guests as their talks started in a luxury hotel resort in the southern region of Puglia.