G7 summit opens with deal to use Russian assets for Ukraine as traditional EU powers recalibrate

BORGO EGNAZIA, Italy — A Group of Seven summit opened Thursday with agreement on a U.S. proposal to support a $50 billion loan to Ukraine using frozen Russian assets as collateral, giving Kiev a strong show of support even as the European political spectrum shifts to the right.

Italian Prime Minister Giorgia Meloni welcomed the heads of state of the main industrialized G7 countries to a luxury resort in southern Italy, saying she wanted the message of the meeting to be one of dialogue with the South and of the unit.

She compared the G7 to the century-old olive trees, symbols of the Puglia region, with their strong roots and their branches projected towards the future.

Beyond discussions on Ukraine, the war in Gaza and China's industrial policy, Pope Francis will become the first pope to address a G7 summit, adding a touch of celebrity and moral authority to the annual gathering. I will speak on Friday promises and perils of artificial intelligencebut he should also renew his call for a peaceful end Full-scale invasion of Ukraine by Russia and the Israel-Hamas War in Gaza.

The G7 includes Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. Italy, which is hosting the summit, has invited several African leaders The Algerian president Abdelmadjid TebbouneKenyan President William Ruto and Tunisian President Kis Saied to press Meloni's development and migration initiatives on the continent.

Other guests include Ukrainian President Volodymyr Zelenskyy and the Brazilian President. Luiz Incio Lula da Silvathe newly elected Indian Prime Minister Narendra Modi and Turkish President Recep Tayyip Erdogan.

With Biden, British Prime Minister Rishi Sunak and now French President Emmanuel Macron facing elections in the coming months, the pressure was on the G7 to do what they can while the status quo lasts. what.

The American proposal involves the engineering of a $50 billion loan to help Ukraine in its fight against Russia, which would use as collateral the interest earned on profits from the frozen assets of the Russian central bank, most of which are held in the European Union.

A French official, speaking to reporters Wednesday, said a political decision had been made by leaders, but that technical and legal details The mechanism for exploiting these assets remains to be developed. The issue is complicated because if Russian assets are ever thawed, for example if the war ends, the windfall profits can no longer be used to repay the loan, requiring a burden-sharing agreement with other countries.

Zelensky cited the assets deal as one of several arrangements he hoped to see finalized at the summit, including a bilateral security agreement with the United States.

“I am grateful to our partners for their confidence in us and our victory,” he said in a message on social media platform X.

Sunak, for his part, announced up to 242 million pounds (286 million euros or $310 million) in non-military aid to Ukraine and a new round of sanctions against suppliers of munitions and other aid to the Russian army located in China, Israel, Kyrgyzstan and Turkey. . Washington has also sent strong signals of support, with expanded sanctions against Russia to target Chinese companies that help its war machine.

Meloni enters the meeting fortified at home and abroad after her far-right party performed even stronger in the European Parliament elections than in the 2022 national general elections that made her the first female Italian Prime Minister. Known for its revolving-door governments, Italy now finds itself in the unusual position of being the most stable power in the EU.

The leaders of the other two EU members, Germany and France, are not faring as well, shaken by the strong showings of far-right parties in the vote. Macron called early elections and German Chancellor Olaf Scholz saw its Social Democrats finish behind the traditional conservatives and the far-right Alternative for Germany.

As a result, Meloni will likely be able to steer the three-day meeting toward its main priority points while strengthening its role on the world stage, analysts say. A sign of his far-right muscles: Meloni's office denied media reports that Italy was trying to water down language on abortion access in the final communiqué.

A French official, speaking anonymously in line with standard Macron cabinet practice, said there were differences of views with Italian negotiators on some issues, including sexual and reproductive health and vaccines.

Italian Foreign Minister Antonio Tajani confirmed abortion was on the agenda but said discussions were continuing.

While the recent results are unlikely to radically change the direction of the next G7 summit, this electoral victory provides Prime Minister Meloni with additional leverage to make it a predominantly Mediterranean summit,” said Nick O'Connell, Director Deputy of the Atlantic Council.

This includes promoting his migration agenda as Meloni seeks to leverage his agenda for a non-exploitative relationship with Africa to boost development while curbing illegal migration to Europe.

Pope Francis has called for a international treaty ensuring that AI is developed and used ethically, recognizing the promise it offers but highlighting the serious and existential threats it poses.

He will carry this campaign to the industrialized countries of the world while wars rage on several fronts. One of his biggest concerns is the use of AI in the arms sector. But Francis also worries about what AI means for the poorest and weakest in everyday life: a technology that could determine the trustworthiness of a mortgage applicant, the right of a migrant to receive political asylum or the risk of recidivism of a person already convicted of a crime.

The G7 summit is taking place in a sprawling luxury resort that resembles a theater set, a fake town designed to look like one of Puglia's white-stone medieval hamlets, but which actually only dates from 2010.

Located next to a real archaeological park, Borgo Egnazia features narrow streets, villas, restaurants and a square with a clock tower. A favorite of celebrities, it was closed to outsiders for the duration of the summit.

No such five-star accommodation awaits the more than 2,000 police and carabinieri who have been dispatched to provide security. Authorities sequestered the decommissioned cruise ship sheltering them in the port of Brindisis on Wednesday after the police union complained about unacceptable hygiene conditions on board.

As throughout the G7, a range of anti-globalization, anti-war and climate activists are organizing protests around the summit venue, but far from where the leaders are meeting. A group is organizing a dinner for the poor on Friday evening calling for peace, people's rights and against the Big 7 who claim to decide the destiny of the world and our planet.

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Nicole Winfield reported from Bari. Associated Press writers Angela Charlton and Sylvie Corbet contributed to this report from Paris.