G7 leaders agree to lend Ukraine billions backed by Russia's frozen assets. Here's how it will work

WASHINGTON (AP) — Leaders of the Group of Seven wealthy democracies have agreed to engineer a $50 billion loan to help Ukraine in its fight for survival. Interest earned on profits from Russia’s frozen central bank assets would be used as collateral.

Details of the deal were being hashed out by G7 leaders at their summit in Italy. The money could reach Kyiv before the end of the year, according to U.S. and French officials.

President Joe Biden told reporters at a news conference Thursday that the move was part of a “historic agreement.” Ukraine's president, Volodymyr Zelenskyy, said providing a loan through Russia's assets "is a vital step forward in providing sustainable support for Ukraine in winning this war."

Here's how the plan would work:

Most of the money would be in the form of a loan mostly guaranteed by the U.S. government, backed by profits being earned on roughly $260 billion in immobilized Russian assets. The vast majority of that money is held in European Union nations.

A French official said the loan could be “topped up” with European money or contributions from other countries. The White House said Canada will loan Ukraine up to $5 billion, while European countries have expressed interest in sending as much as half of the total package. Japan has also said it intends to help fund Ukraine — though its laws require the money to go to Ukraine’s budget, not its war effort.

The G7 leaders' official statement also left the door open to trying to confiscate the Russian assets entirely.

That's much harder to do.

For more than a year, officials from multiple countries have debated the legality of confiscating the money and sending it to Ukraine.

The U.S. and its allies immediately froze whatever Russian central bank assets they had access to when Moscow invaded Ukraine in 2022. That basically was money being held in banks outside Russia.

The assets are immobilized and cannot be accessed by Moscow, but they still belong to Russia.

While governments can generally freeze property or funds without difficulty, turning them into forfeited assets that can be used for the benefit of Ukraine requires an extra layer of judicial procedure, including a legal basis and adjudication in a court.

The EU instead has set aside the profits being generated by the frozen assets. That pot of money is easier to access.

Separately, the U.S. this year passed a law called the REPO Act — short for the Rebuilding Economic Prosperity and Opportunity for Ukrainians Act — that allows the Biden administration to seize $5 billion in Russian state assets in the U.S. and use them for the benefit of Kyiv. That arrangement is being worked out.

It will be up to technical experts to work through the details.

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

Biden's national security adviser, Jake Sullivan, said the goal is “to provide the necessary resources to Ukraine now for its economic energy and other needs so that it's capable of having the resilience necessary to withstand Russia's continuing aggression.”

Another goal is to get the money to Ukraine quickly.

The French official, who was not authorized to be publicly named according to French presidential policy, said the details could be worked out "very quickly and in any case, the $50 billion will be disbursed before the end of 2024.”

Beyond the costs of the war, the needs are great.

The World Bank’s latest damage assessment of Ukraine, released in February, estimates that costs for reconstruction and recovery of the nation stand at $486 billion over the next 10 years.

The move to unlock Russia's assets comes after there was a long delay in Washington by Congress in approving military aid for Ukraine.

At an Atlantic Council event previewing the G7 summit, a former U.S. ambassador to Ukraine, John Herbst, said “the fact that American funding is not quite reliable is a very important additional reason to go that route.”

If Russia regained control of its frozen assets or if the immobilized funds were not generating enough interest to pay back the loan, "then the question of burden-sharing arises,” according to the French official.

Max Bergmann, director of the Europe, Russia and Eurasia Program at the Center for Strategic and International Studies, said last week that there were worries among European finance ministers that their countries “will be left holding the bag if Ukraine defaults.”

Some nations are critical of the plan to seize Russian assets.

Chinese Embassy spokesman Liu Pengyu told The Associated Press that the U.S. is "fueling the fight and inciting confrontation.”

“We urge the U.S. to immediately stop slapping illegal unilateral sanctions and play a constructive role in ending the conflict and restoring peace.”

Associated Press writers Sylvie Corbet in Paris, Darlene Superville in Fasano, Italy, and Colleen Long aboard Air Force One en route to Italy contributed to this report.

U.S. President Joe Biden, right, and Ukraine's President Volodymyr Zelenskyy talk to journalists during a news conference after signing a bilateral security agreement during the sidelines of the G7 summit at Savelletri, Italy, Thursday, June 13, 2024. (AP Photo/Andrew Medichini)

President Joe Biden and Ukrainian President Volodymyr Zelenskyy, left, leave after signing a bilateral security agreement on the sidelines of the G7, Thursday, June 13, 2024, in Savelletri, Italy. (AP Photo/Alex Brandon)

President Joe Biden and Ukrainian President Volodymyr Zelenskyy, left, shake hands after signing a security agreement on the sidelines of the G7, Thursday, June 13, 2024, in Savelletri, Italy. (AP Photo/Alex Brandon)

Ukraine's President Volodymyr Zelenskyy talks to journalists during a news conference after signing a bilateral security agreement with U.S. President Joe Biden during the sidelines of the G7 summit at Savelletri, Italy, Thursday, June 13, 2024. (AP Photo/Andrew Medichini)

U.S. President Joe Biden listens to a question during a news conference after signing a bilateral security agreement with Ukraine's President Volodymyr Zelenskyy during the sidelines of the G7 summit at Savelletri, Italy, Thursday, June 13, 2024. (AP Photo/Andrew Medichini)

From left, European Council President Charles Michel, German Chancellor Olaf Scholz, Canada's Prime Minister Justin Trudeau, French President Emmanuel Macron, Italian Prime Minister Giorgia Meloni, U.S. President Joe Biden, Japan's Prime Minister Fumio Kishida, Britain's Prime Minister Rishi Sunak and European Commission President Ursula von der Leyen participate in a working session at the G7, Thursday, June 13, 2024, in Borgo Egnazia, Italy. (AP Photo/Alex Brandon, Pool)

U.S. President Joe Biden arrives to a G7 world leaders summit at Borgo Egnazia, Italy, Thursday, June 13, 2024. (AP Photo/Luca Bruno)

From left, European Council President Charles Michel, German Chancellor Olaf Scholz, Canada's Prime Minister Justin Trudeau, French President Emmanuel Macron, Italian Prime Minister Giorgia Meloni, U.S. President Joe Biden, Japan's Prime Minister Fumio Kishida, Britain's Prime Minister Rishi Sunak and European Commission President Ursula von der Leyen stand for a group photo at the G7, Thursday, June 13, 2024, in Borgo Egnazia, Italy. (AP Photo/Alex Brandon)

Ukrainian President Volodymyr Zelenskyy walks, on arrival at the G7, in Borgo Egnazia, Italy, Thursday, June 13, 2024, (Sean Kilpatrick/The Canadian Press via AP)

U.S. President Joe Biden meets with Ukrainian President Volodymyr Zelenskyy in Paris, Friday, June 7, 2024. (AP Photo/Evan Vucci)

President Joe Biden arrives on Air Force One at Brindisi International Airport, Wednesday, June 12, 2024, in Brindisi, Italy. (AP Photo/Alex Brandon)

TAROUBA, Trinidad (AP) — A long, tortuous World Cup title drought is closer than ever to ending for South Africa after a nine-wicket win over first-time semifinalist Afghanistan at the global Twenty20 cricket tournament on Wednesday.

Marco Jansen and Kagiso Rabada set the foundations for the lopsided victory with destructive opening bursts of pace bowling to have Afghanistan reeling at 20-4 in the fourth over, and eventually all out for a paltry 56.

The South Africans lost just one wicket in pursuit of its first semifinal win at a global men's limited-overs tournament, with Reeza Hendricks hitting a six and a four on consecutive deliveries to lift South Africa to 60 for 1 in the ninth over.

Hendricks was unbeaten on 29 from 25 balls in an unbroken 55-run second-wicket stand with skipper Aiden Markram, who finished 23 not out.

The South Africans will face either defending champion Englandor India in the final at Barbados on Saturday.

“One more step — it’s an exciting challenge for us,” Markram said in a post-match TV interview. "We’ve never been there (in a final) before, and nothing to be scared of.

“It’s an opportunity that we’ve never had and, and we’ll be really excited about that opportunity.”

The South Africans lost six and tied one — against eventual champion Australia in 1999 — of their previous seven trips to the semifinals of a World Cup in either the one-day or T20 formats.

Markram said those stats belonged to the teams that played those matches, and his lineup was full of belief.

Afghanistan captain Rashid Khan won the toss and opted to bat in his team's first ever appearance in a World Cup semifinal. Everything went South Africa’s way after that.

Jansen (3-16) took wickets in the first and third overs and Kagiso Rabada (2-14) opened with a double-wicket maiden as Afghanistan slumped to 20-4 after 3.4 overs.

The opening pair that had carried Afghanistan so well during the tournament was gone, exposing the middle and lower order to a South Africa bowling attack hitting form at the perfect stage.

Rahmanullah Gurbaz (0) faced three balls before he edged to slip and was out to Jansen in the first over. Ibrahim Zadran (2) was beaten by a Rabada inswinger and bowled on the first ball of the third over.

Anrich Nortje (2-7) chimed in with two wickets as the pacemen continued to rip through the Afghanistan innings before wrist spinner Tabraiz Shamsi took three wickets in 11 deliveries — all lbw decisions to balls keeping low — to finish off Afghanistan for 56 in 11.5 overs.

Azmattullah Omarzai top scored with 10, the only Afghan batter to reach double figures.

South Africa lost only opener Quinton de Kock — bowled by Fazalhaq Farooqi for five in the second over — in the run chase.

“We just wanted to come out in this game and hit our straps, the way we’ve been doing throughout the entire tournament,” Rabada said of South Africa's bowling onslaught. “We just felt that we needed to continue in that vein.

“And today it just happened for us."

Asked if this is the team to finally end South Africa's World Cup drought, Rabada was confident: “We 100% believe that this is the team.”

Afghanistan was playing in the last four for the first time, and it entered the match with three of the five leading wicket takers in the tournament and two of the top three batters, based on runs scored.

The Afghan team's run to the semifinals, particularly its first win in any format against Australia and against Bangladesh in the early hours of Tuesday in the Super Eight stage, inspired a generation of fans.

Rashid said knowing Afghanistan could beat the top-ranked teams and be among the world's best was his highlight of the tournament.

“It was something very special for us,” he said. “And it’s just the beginning for us, you know, we got that kind of confidence we want and the belief that yes, we can beat any side on a day.

“So overall, it was a great tournament for us.”

South Africa remains unbeaten at the tournament, but had to endure tough contests and narrow wins over Nepal, Netherlands, Bangladesh and England and only beat West Indies with five balls to spare in the Super Eight stage.

“A lot of our games have been really close and I know there’s a lot of people back at home in the early hours of the morning, waking up and we're giving them a lot of gray hair!” Markram said. “So hopefully this evening was a little bit more comforting for them.”

AP cricket: https://apnews.com/hub/cricket

Afghanistan's captain Rashid Khan, left, walks with his teammates from the field following their nine wicket loss to South Africa in their men's T20 World Cup semifinal cricket match at the Brian Lara Cricket Academy in Tarouba, Trinidad and Tabago, Wednesday, June 26, 2024. (AP Photo/Ricardo Mazalan)

Afghanistan's captain Rashid Khan, centre, walks from the field with his players following their nine wicket loss to South Africa in their men's T20 World Cup semifinal cricket match at the Brian Lara Cricket Academy in Tarouba, Trinidad and Tabago, Wednesday, June 26, 2024. (AP Photo/Ricardo Mazalan)

South Africa's Reeza Hendricks, left, and teammate Aiden Markram celebrate after defeating Afghanistan in their men's T20 World Cup semifinal cricket match at the Brian Lara Cricket Academy in Tarouba, Trinidad and Tabago, Wednesday, June 26, 2024. (AP Photo/Ricardo Mazalan)

South Africa's Reeza Hendricks, left, embraces teammate Aiden Markram after defeating Afghanistan in their men's T20 World Cup semifinal cricket match at the Brian Lara Cricket Academy in Tarouba, Trinidad and Tabago, Wednesday, June 26, 2024. (AP Photo/Ricardo Mazalan)

South Africa's Reeza Hendricks, left, embraces teammate Aiden Markram after defeating Afghanistan in their men's T20 World Cup semifinal cricket match at the Brian Lara Cricket Academy in Tarouba, Trinidad and Tabago, Wednesday, June 26, 2024. (AP Photo/Ricardo Mazalan)

South Africa's captain Aiden Markram walks from the field following his team's nine wicket win over Afghanistan in their men's T20 World Cup semifinal cricket match at the Brian Lara Cricket Academy in Tarouba, Trinidad and Tabago, Wednesday, June 26, 2024. (AP Photo/Ricardo Mazalan)

Afghanistan fans react ahead of the men's T20 World Cup semifinal cricket match between Afghanistan and South Africa at the Brian Lara Cricket Academy in Tarouba, Trinidad and Tabago, Wednesday, June 26, 2024. (AP Photo/Ricardo Mazalan)

The Afghanistan team react ahead of the men's T20 World Cup semifinal cricket match between Afghanistan and South Africa at the Brian Lara Cricket Academy in Tarouba, Trinidad and Tabago, Wednesday, June 26, 2024. (AP Photo/Ricardo Mazalan)

Afghanistan's Gulbadin Naib reacts after he was out bowled by South Africa's Marco Jansen during the men's T20 World Cup semifinal cricket match between Afghanistan and South Africa at the Brian Lara Cricket Academy in Tarouba, Trinidad and Tabago, Wednesday, June 26, 2024. (AP Photo/Ricardo Mazalan)

South Africa's Kagiso Rabada, centre, is congratulated by teammates after dismissing Afghanistan's Mohammad Nabi during the men's T20 World Cup semifinal cricket match between Afghanistan and South Africa at the Brian Lara Cricket Academy in Tarouba, Trinidad and Tabago, Wednesday, June 26, 2024. (AP Photo/Ricardo Mazalan)

South Africa's Tristan Stubbs, left, celebrates with teammate Marco Jansen after taking a catch to dismiss Afghanistan's Azmatullah Omarzai during the men's T20 World Cup semifinal cricket match between Afghanistan and South Africa at the Brian Lara Cricket Academy in Tarouba, Trinidad and Tabago, Wednesday, June 26, 2024. (AP Photo/Ricardo Mazalan)

South Africa's Marco Jansen, left, is congratulated by a teammate after dismissing Afghanistan's Gulbadin Naib during the men's T20 World Cup semifinal cricket match between Afghanistan and South Africa at the Brian Lara Cricket Academy in Tarouba, Trinidad and Tabago, Wednesday, June 26, 2024. (AP Photo/Ricardo Mazalan)

Afghanistan's Azmatullah Omarzai, right, walks from the field after he was dismissed as teammate Rashid Khanduring the men's T20 World Cup semifinal cricket match between Afghanistan and South Africa at the Brian Lara Cricket Academy in Tarouba, Trinidad and Tabago, Wednesday, June 26, 2024. (AP Photo/Ricardo Mazalan)

South Africa's Tabraiz Shamsi, centre, is congratulated by teammates after dismissing Afghanistan's Noor Ahmad during the men's T20 World Cup semifinal cricket match between Afghanistan and South Africa at the Brian Lara Cricket Academy in Tarouba, Trinidad and Tabago, Wednesday, June 26, 2024. (AP Photo/Ricardo Mazalan)