The goal is to begin disbursement of funds by the end of the year.

The leaders of the Group of Seven (G7) have reached an agreement to tap into profits from frozen Russian assets to provide a $50 billion loan to Ukraine, as announced by the G7 on Friday.

“These loans will be serviced and repaid through future extraordinary revenues from immobilized Russian sovereign assets, in accordance with the legal frameworks of the G7 and international law,” the group stated after a meeting of finance ministers in Washington.

The intention is to start releasing the funds by year-end.

The loan will be entirely repaid using profits generated from over $250 billion in Russian assets that have been frozen in Western nations since Moscow’s invasion of Ukraine in February 2022.

On Wednesday, Washington revealed plans to contribute $20 billion to the loan in December, aiming to protect its support from potential repercussions related to the U.S. elections. Donald Trump has previously raised doubts about ongoing U.S. support for Ukraine should he return to the presidency.

This agreement follows earlier U.S. statements indicating that substantial contributions were contingent on the EU altering its sanctions regulations.

The EU, which controls most of the frozen assets, has pledged to provide up to €35 billion to Ukraine and is expected to allocate an additional $20 billion. The remaining $10 billion will be distributed among the U.K., Canada, and Japan.

According to a statement from G7 ministers, funds will be allocated through bilateral loans, beginning as early as December 1 and continuing until the end of 2027. “Each bilateral loan will take effect no later than June 30, 2025,” reflecting Ukraine’s urgent financing needs.

The EU has also completed its expedited process for its contribution to the loan this week.