According to a source with knowledge of the matter, President Joe Biden’s main objective at the G7 summit in Italy is to reinforce a deal that could potentially offer $50 billion to Ukraine by utilizing the proceeds from Russian assets that have been frozen.
The urgency of relieving Ukraine’s desperate battlefield situation is being tackled by using Russian funds instead of taxpayer dollars, according to the U.S.’s argument. To emphasize the importance of the matter, Ukraine’s President Volodymyr Zelensky will attend the summit in person.
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This week, Biden is set to have another meeting with Zelensky, marking their second meeting in just one week since their sit-down in Paris.
During the summit, the seven member countries are currently in the process of negotiating the details of the agreement. Despite this, a consensus has not yet been reached. The aim is to announce the agreement in the G7 communique at the end of the summit this week, according to the source.
According to the source, financing Ukraine through this plan would send a strong message to Vladimir Putin of Russia that the support from the United States and its allies towards Ukraine will not waver, irrespective of the outcomes of the elections in their respective countries.
According to an insider, the G7 nations are currently grappling with some challenging aspects of the plan, such as determining the specifics of disbursement and repayment assurances. Additionally, there is a divergence of opinions among European nations regarding the allocation of these profits, with some in favor of direct spending on arms. The situation is further complicated by legal issues and uncertainties regarding the entity responsible for backing the loan.
Israel/Hamas war
The G7 summit marks a significant event following the Hamas Oct. 7 attack on Israel, which had previously led to divided opinions among member countries regarding the war. However, the countries have now come together to support President Biden’s proposal for a cease-fire. A joint statement was released earlier this month by G7 leaders, formally endorsing Biden’s plan and urging Hamas to agree to it.
China
Leaders are actively discussing strategies to counter China’s trade practices and tackle the issue of overcapacity. It is widely agreed among the G7 nations that China’s surplus industrial capacity is a major global concern.
There is a growing concern that the import of heavily subsidized products from China could have a devastating impact on various industries in the U.S. and other countries. Steel, machinery, solar products, electric vehicles, and batteries are among the products that are being flooded into the market. In response to this, President Biden recently raised tariffs on strategic sectors of Chinese imports, while maintaining the tariffs on over $300 billion worth of Chinese goods that were imposed by Trump.
Pope Francis, AI
The upcoming G7 summit will have the honor of hosting Pope Francis as he shares his thoughts on artificial intelligence, which is also one of the summit’s key areas of focus. The Pope has been vocal about the need for an international agreement that will guarantee the ethical development and application of AI.
