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A top US official has said the G7’s move to give Ukraine a $50 billion loan through interest on frozen Russian assets is lawful.

Treasury Secretary Janet Yellen dismissed Russian President Vladimir Putin’s accusations of the move being unlawful and “theft.” She said, “There is no sense at all in which it’s theft.” She continued, “Russia’s funds are sitting in cash, but they’re generating income for the institution, which Russia has no claim on. There’s no legal issue here.”

This loan is financed by the interest generated from approximately $280 billion in frozen Russian assets in Europe and the US. Seizing Russian assets and utilizing the interest, which amounts to about $2.6 billion to $3.6 billion annually, allows the G7 to support Ukraine without unfreezing the principal assets.

The loan from the G7 comes as Ukraine’s military has faced challenges due to inadequate supplies. With the $50 billion, Ukraine will be able to purchase equipment from defense contractors directly. Depending on the country they are buying from, they will have priority in receiving their purchases immediately.