(Savelletri Di Fasano) Canada is prepared to contribute $5 billion to a loan to Ukraine that will be based on future revenues from frozen Russian assets, according to what The Canadian Press has learned from a senior source within the federal government.
The source, who spoke on condition of anonymity because he was not authorized to publicly discuss details of the loan, said G7 leaders were finalizing the final details on it.
Leaders of the G7 countries have agreed to provide a 50 billion loan to help Ukraine in its fight for survival amid the Russian invasion. The loan would use interest earned on profits from the Russian central bank’s frozen assets as collateral.
This news comes on the first day of the G7 leaders’ summit taking place in Puglia, Italy.
Canada has been heavily involved in U.S.-led efforts to use frozen Russian central bank assets to help Ukraine.
The G7 announced the freezing of Russian central bank assets in 2022, shortly after Russia invaded Ukraine.
A government source not authorized to discuss the matter publicly said Finance Minister Chrystia Freeland called her G7 counterparts last month to gain support for a deal to use the assets to provide more financial aid to Ukraine.
The three-day summit is an opportunity for leaders of seven wealthy democracies – France, Italy, Germany, the United Kingdom, the United States, Canada and Japan – to work together on common goals.
During the summit, Prime Minister Justin Trudeau is scheduled to meet, among others, German Chancellor Olaf Scholz, French President Emmanuel Macron and Ukrainian President Volodymyr Zelenksy.
He is also scheduled to participate in working sessions with other leaders on collaboration on Africa, climate change, the Middle East and Ukraine.
After the G7 Summit, Mr. Trudeau will travel to Switzerland on Saturday to attend the Ukraine Peace Summit, where a larger group of countries will meet to discuss a first step toward peace in the country that is trying to push back the Russian invasion for three years.
Swiss officials clarified that the conference aims to chart a path towards “lasting peace” in Ukraine, achieve a “common understanding” to get there and develop a road map on how to involve both sides in the talks.
Canada will in turn host the G7 Summit next year.