G7 leaders back deal to use interest from Russian assets for Ukraine

Leaders of the Group of Seven major democracies started their annual summit on Thursday، many of them under a cloud at home but determined to make a difference on the world stage as they seek to help Ukraine and counter China's economic ambitions.

Heading into two days of talks، diplomats said a deal had been agreed in principle on plans toissue $50 billion of loans for Ukraineusing interest from Russian sovereign assets frozen after Moscow launched its invasion of its neighbour in 2022.

Western nations were also unanimous in their concern over China's industrial overcapacity، which they say is distorting global markets، and their determination to help African states develop their economies، diplomats said.

"There is a lot of work to be done، but I am sure that in these two days we will be able to have discussions that will lead to concrete and measurable results،" Italian Prime Minister Giorgia Meloni told her G7 guests as their talks started in a luxury hotel resort in the southern region of Puglia.

Major domestic woes

While Meloni is flying high after triumphing in weekend European elections، the leaders of the other six nations - the United States، Japan، France، Germany، Britain and Canada - face major domestic woes that risk undermining their authority.

U.S. President Joe Biden faces an uphill battle to win re-election in November، British Prime Minister Rishi Sunak looks certain to lose power at a national poll next month and French President Emmanuel Macron dissolved his country's parliament on Sunday after his party was trounced in the European vote.

All smiled broadly as they greeted Meloni under a blazing sun at the entrance to the Borgo Egnazia resort where they will spend the next two days in sessions that will later be opened to a host of fellow leaders، including Pope Francis.

For a second year running، Ukrainian President Volodymyr Zelenskiy will attend the summit، taking part in talks on Thursday afternoon، after which he will sign a new، long-termsecurity accordwith U.S. President Joe Biden.

The G7 leaders will also almost certainly announce that they have agreed the outline of a multi-year loan using profits from the impounded Russian funds، which legal experts will then finalise with the aim of raising cash by the end of the year.

"I think we will have the major tentpoles of this decided، but some of the specifics left to be worked through by experts on a defined timetable،" White House National Security Adviser Jake Sullivan said of the discussions.