G7 countries prepare to safeguard Ukraine aid from potential changes under Trump administration

Washington’s G7 allies are warming to a US plan to rush tens of billions of dollars in funding to Ukraine before Donald Trump’s potential return to the White House. Under the plan, set to be discussed at a June summit, Kyiv would receive money upfront from a G7 loan backed by future profits generated from about $350bn of Russian assets immobilized in the west in response to Moscow’s invasion of Ukraine.

The plan, which could generate around $50bn for Ukraine as early as this summer, has gained support from some previously reluctant G7 members. The shift in sentiment comes after a diplomatic push by the US, seeking to secure agreement at a summit of G7 leaders next month.

The funding would come at a crucial time for Kyiv as its forces struggle to hold the line amid a renewed Russian offensive following delays in the delivery of western military aid. The plan is also seen as a way to ensure long-term funding for Ukraine in case Joe Biden loses this year’s presidential election to Trump, who has opposed US aid to Ukraine.

Negotiations are ongoing ahead of a meeting of G7 finance ministers and central bank governors in Italy in the coming week. The US is pushing for language in the joint G7 statement referring to leveraging the proceeds from Russian state assets, with backing from Canada and the UK.

While details are yet to be agreed upon, including who would issue the debt and how risks and repayment would be shared, the goal is to have consensus among G7 leaders next month. The plan also faces potential delays at the EU level, with countries like Hungary potentially causing obstacles.