BARI, Italy — President Joe Biden and his counterparts from the richest democratic countries reached a deal Thursday to give Ukraine a $50 billion loan this year backed by frozen Russian assets, signaling a continued commitment to fending off the Russian invasion hit, U.S. officials said.
As Ukraine struggles to maintain its independence amid the Russian onslaught, the money will go toward military aid, humanitarian aid and reconstruction of the country, a Biden administration official said in a news conference.
The U.S. is prepared to commit the full $50 billion if necessary, but expects other countries to step forward and share the risk, the official said. The loan will be covered by interest from approximately $300 billion in frozen Russian assets.
“How are we going to pay it back? Russia will pay,” the official said.
The deal was expected to be officially announced on Thursday at a summit meeting of the Group of Seven (G7) countries, advanced industrial democracies including Germany, Japan, France, the United Kingdom, Canada and Italy.
“There was a shared recognition by every G7 member that the battlefield situation remains difficult and that if the war continues, Ukraine will still have significant financial needs next year and beyond,” the official said, speaking on condition of anonymity .
Negotiations on this effort have begun since Russia launched its invasion in 2022, but political uncertainty may have given renewed urgency to the talks. Biden faces a tough re-election campaign, and if he loses to Republican Donald Trump in November, there are no guarantees that the next administration would want more money for Ukraine.
“This summit is our best chance to act collectively, to close the gap by making Russia pay, not our taxpayers,” the official added.
One of the summit participants, wearing his signature green uniform, is Ukrainian President Volodymyr Zelenskyy, who met Biden in person in Paris last week during events marking the 80th anniversary of the D-Day landings. During that trip, Biden announced a separate $225 million arms package for Ukraine.
The two leaders were expected to sign a joint security deal on Thursday, cementing a partnership aimed at preserving Ukraine’s independence and preventing Russian forces from overrunning the country.
“This is a big problem. It is a milestone in our partnership and a true sign of our commitment, not just this month or year but also for many years to come, to support Ukraine, both in defending against Russian aggression and in deterring future aggression, so that Ukraine can be a sovereign, viable, thriving democracy,” White said. House of Representatives National Security Advisor Jake Sullivan told reporters in a briefing.
Biden’s stay in Italy is short-lived: he arrived late on Wednesday and will leave on Friday evening. His agenda is packed with meetings that, apart from Ukraine, will focus on global infrastructure projects and what Western officials say is China’s practice of flooding markets with goods.
He is expected to hold a press conference on Thursday evening.
A personal highlight of Biden’s visit will be a meeting with Pope Francis, who is also attending the summit and will discuss the risks of artificial intelligence. A practicing Catholic, Biden met with Pope Francis in Rome in 2021 and came forward to say the pope had told him he should receive communion, despite conservative U.S. bishops who had said Biden’s position on abortion rights put him off the Lord’s Supper should disqualify.
Biden’s second European trip this month comes at a tumultuous time, both politically and personally. The day before the departure of the president, his son Hunter Biden was found guilty of three misdemeanor weapons charges related to his drug use.
European elections delivered gains for the far right this week, prompting French President Emmanuel Macron, an ally of Biden, to call for early elections in his country. Meanwhile, Biden is locked in a tight race back home that could move U.S. foreign policy in a more isolationist direction if Trump wins.
As president, Trump often sparred with G7 allies, and if he returns, some of his former aides believe he could pull the U.S. out of the NATO military defense alliance, designed as a bulwark against Russia.
This article was originally published on NBCNews.com
