Leaders of the Group of Seven nations meeting in Italy on Thursday agreed in principle to a $50 billion loan for Ukraine backed by frozen Russian assets, ordering officials at finance ministries to finalise the details in weeks.
Increasing support for war-torn Ukraine through the use of Russian frozen assets was a priority at the two-day G7 summit.
Ukrainian President Volodymyr Zelenskyy joined the G7 leaders for a special session on Thursday at the luxury Borgo Egnazia hotel resort on the Adriatic Sea.
“We have political agreement at the highest levels for this deal,” a senior US official said. “And it is $50 billion this year that will be committed to Ukraine.”
US President Joe Biden and Mr Zelenskyy also signed a 10-year bilateral security agreement on Thursday, aimed at bolstering Ukraine's defence against Russian invaders.
"Our goal is to strengthen Ukraine's credible defence and deterrence capabilities for the long term," Mr Biden said.
The EU's 27 countries in March adopted a plan to channel most windfall profits from frozen assets, mostly held in Belgium, towards a fund for military aid to Ukraine.
Profits are estimated at €3 billion ($3.24 billion) a year.
But Washington has been pushing the G7 to make more money available faster for Kyiv, European Council President Charles Michel said a few hours before the deal's confirmation.
The agreement on the loan, expected to be released to Ukraine by the end of the year, has raised questions about what would happen if the seized Russian state assets were released or did not generate as much profit as expected.
European diplomats have said the exact mechanism to guarantee these loans still needs work.
"All G7 are contributing to this loan. It is the windfall profits from the Russian immobilised assets in Europe that will serve it," European Commission President Ursula von der Leyen said.
"The finance ministers are now going through the details – for example, the topic of backstops that are necessary – and will clarify this as soon as possible."
The US official said Washington was willing to provide the entire $50 billion but said its contribution could be “significantly less” as it would be a shared initiative.
“We will not be the only lenders. This will be a loan syndicate. We're going to share the risk, because we have a shared commitment to get this done,” the official said.
But he would not say how much or even if the other G7 countries would contribute.
The US-Ukraine security pact includes a commitment by the US to work with Congress on a source of sustainable funding for the future.
Text of the agreement released by the White House also describes how the US will co-ordinate with Ukraine and other allies to make sure Ukraine has the military, intelligence and other means necessary to defend itself and deter Russian aggression.
The US and Ukraine would also consult “at the highest levels” in the event of a future armed attack by Russia against Ukraine.
New sanctions on Moscow
G7 countries increased pressure on Moscow this week, with the US on Wednesday expanding its sanctions on financial institutions considered to be supporting Russia's war economy.
The US also restricted the Russian military industrial base's ability to exploit certain US software and information technology services.
The UK followed with similar sanctions on Thursday, including taking aim at Moscow's main stock exchange.
Prime Minister Rishi Sunak said the UK “will always stand shoulder to shoulder with Ukraine in its fight for freedom”.
Among the new UK measures are its first sanctions on vessels in Russian President Vladimir Putin's so-called shadow fleet, used by the Kremlin to circumvent western curbs on its oil exports.
Sanctions are also aimed at suppliers of munitions, machine tools, microelectronics and logistics to Russia's military, Downing Street said.
Those suppliers include entities in China, Israel, Kyrgyzstan and Turkey, along with ships that carry military goods from North Korea to Russia.
G7 leaders also expressed their support of a US plan for a ceasefire in Gaza and said they were concerned about an escalation of tension at the Lebanese-Israeli border.
Meetings will be widened to some non-G7 leaders on the second day of the summit.
Guests including Pope Francis, Indian Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva will discuss artificial intelligence, energy and relations between Africa and the Mediterranean region.
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
The End of Loneliness
Benedict Wells
Translated from the German by Charlotte Collins
Sceptre
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%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ERobert%20Lorenz%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Liam%20Neeson%2C%20Kerry%20Condon%2C%20Jack%20Gleeson%2C%20Ciaran%20Hinds%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2%2F5%3C%2Fp%3E%0A
Global institutions: BlackRock and KKR
US-based BlackRock is the world's largest asset manager, with $5.98 trillion of assets under management as of the end of last year. The New York firm run by Larry Fink provides investment management services to institutional clients and retail investors including governments, sovereign wealth funds, corporations, banks and charitable foundations around the world, through a variety of investment vehicles.
KKR & Co, or Kohlberg Kravis Roberts, is a global private equity and investment firm with around $195 billion of assets as of the end of last year. The New York-based firm, founded by Henry Kravis and George Roberts, invests in multiple alternative asset classes through direct or fund-to-fund investments with a particular focus on infrastructure, technology, healthcare, real estate and energy.
Mobile phone packages comparison
Dubai World Cup factbox
Most wins by a trainer: Godolphin’s Saeed bin Suroor(9)
Most wins by a jockey: Jerry Bailey(4)
Most wins by an owner: Godolphin(9)
Most wins by a horse: Godolphin’s Thunder Snow(2)
The biog
Name: Dhabia Khalifa AlQubaisi
Age: 23
How she spends spare time: Playing with cats at the clinic and feeding them
Inspiration: My father. He’s a hard working man who has been through a lot to provide us with everything we need
Favourite book: Attitude, emotions and the psychology of cats by Dr Nicholes Dodman
Favourit film: 101 Dalmatians - it remind me of my childhood and began my love of dogs
Word of advice: By being patient, good things will come and by staying positive you’ll have the will to continue to love what you're doing
Anti-semitic attacks
The annual report by the Community Security Trust, which advises the Jewish community on security , warned on Thursday that anti-Semitic incidents in Britain had reached a record high.
It found there had been 2,255 anti-Semitic incidents reported in 2021, a rise of 34 per cent from the previous year.
The report detailed the convictions of a number of people for anti-Semitic crimes, including one man who was jailed for setting up a neo-Nazi group which had encouraged “the eradication of Jewish people” and another who had posted anti-Semitic homemade videos on social media.
If you go
The flights Etihad (www.etihad.com) and Spice Jet (www.spicejet.com) fly direct from Abu Dhabi and Dubai to Pune respectively from Dh1,000 return including taxes. Pune airport is 90 minutes away by road.
The hotels A stay at Atmantan Wellness Resort (www.atmantan.com) costs from Rs24,000 (Dh1,235) per night, including taxes, consultations, meals and a treatment package.
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Total funding: Self funded
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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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