BORGO EGNAZIA, Italy (NEWSnet/AP) — The United States and European countries have agreed to lock up sanctioned Russian assets until Moscow pays reparations for its invasion of Ukraine, a senior U.S. official said Thursday.

The move clears the way for leaders to announce a $50 billion loan package for Kyiv at the Group of Seven summit, where President Joe Biden is set to sign a security agreement with Ukraine’s Volodymyr Zelenskyy.

The highly anticipated agreement will leverage interest and income from the more than $260 billion in frozen Russian assets, largely held in Europe, to secure a $50 billion loan from the U.S. and additional loans from other partners.

The first disbursements will be made this year, but it will take time for Ukraine to use all the money, the official said. The official spoke on the condition of anonymity to preview the agreement.

Ukraine will be able to spend the money in several areas, including for military, economic and humanitarian needs and reconstruction, the official said.

The leaders’ statement will also leave the door open to confiscating the Russian assets entirely, for which the allies have yet to secure the political will, largely citing legal and financial stability concerns.

The G7 summit opened Thursday in Italy’s picturesque Puglia region in the south with leaders meeting in private as they discussed the war in Gaza, support for Ukraine and other mutual concerns. Biden arrived late Wednesday.

The informal group of industrialized democracies — the U.S., Britain, Canada, France, German, Italy and Japan, plus European governing bodies — meets annually. Italy holds the rotating presidency this year, and Prime Minister Giorgia Meloni is hosting her counterparts.

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