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

abcnews.go.com:

The leaders of the Group of Seven wealthy democracies have agreed to set in motion a $50 billion loan to help Ukraine

WASHINGTON — 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 who confirmed the agreement before a formal announcement.

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.

A U.S. official who spoke on the condition of anonymity to preview the agreement said the G7 leaders' official statement due out Friday will leave 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