G7 Approves Ukraine Loan Utilizing Russian Assets Described as ‘Stolen’
G7 has reached an agreement to provide a loan to Kiev, supported by 'stolen' Russian assets. In response, Moscow has indicated that it will make use of frozen Western funds in a reciprocal action. Read Full Article at RT.com
TroibNews 
Kiev is anticipated to initiate its first drawdown as early as December, as Moscow cautions that it will respond similarly by utilizing frozen Western funds.
Leaders of the G7 nations have agreed to provide Ukraine with a substantial loan that will be supported by the earnings derived from Russian sovereign assets currently frozen by Western countries. In June, G7 members committed to a $50 billion package for Kiev, which is to be repaid using funds from Moscow.
In response to the escalation of the conflict in Ukraine in February 2022, the United States and its allies froze approximately $300 billion in assets belonging to the Russian central bank. The majority of these funds, around €197 billion, are currently held at Euroclear, a Brussels-based clearinghouse. As of mid-July, Euroclear had estimated that the frozen Russian assets generated €3.4 billion in interest.
On Friday, the G7 nations announced that the loans to Ukraine "will be serviced and repaid by future flows of extraordinary revenues stemming from the immobilization of Russian Sovereign Assets."
The statement from the G7 added, “Our aim is to begin disbursing the funds by the end of the year,” following a meeting among the group's finance chiefs in Washington. The ministers disclosed that these funds would be disbursed via a series of bilateral loans starting on December 1 and continuing through the end of 2027.
Recently, US President Joe Biden unveiled a “historic decision” to “provide $20 billion in loans to Ukraine that will be paid back by the interest earned from immobilized Russian sovereign assets.”
Earlier, UK Chancellor of the Exchequer Rachel Reeves announced that the UK would issue a £2.26 billion loan to Kiev under a similar framework.
Additionally, the European Parliament approved a €35 billion loan for Ukraine, also backed by revenues from frozen Russian assets.
Reports indicate that Kiev's Western allies are attempting to expedite negotiations over these loans due to concerns that U.S. aid to Ukraine might diminish if Donald Trump secures victory in the upcoming November 5 presidential election. The Republican nominee has consistently threatened to reduce assistance to Ukraine if elected.
The Russian Embassy in the US reacted to Biden's announcement on Thursday, stating that “theft [has been] elevated here to the rank of state policy.”
On the same day, Russian Finance Minister Anton Siluanov warned, “if Western countries have begun utilizing the income from the frozen Russian reserves, we will do exactly the same.” He further added, “We have frozen money from ‘unfriendly’ companies and organizations.”
Anna Muller contributed to this report for TROIB News
Leaders of the G7 nations have agreed to provide Ukraine with a substantial loan that will be supported by the earnings derived from Russian sovereign assets currently frozen by Western countries. In June, G7 members committed to a $50 billion package for Kiev, which is to be repaid using funds from Moscow.
In response to the escalation of the conflict in Ukraine in February 2022, the United States and its allies froze approximately $300 billion in assets belonging to the Russian central bank. The majority of these funds, around €197 billion, are currently held at Euroclear, a Brussels-based clearinghouse. As of mid-July, Euroclear had estimated that the frozen Russian assets generated €3.4 billion in interest.
On Friday, the G7 nations announced that the loans to Ukraine "will be serviced and repaid by future flows of extraordinary revenues stemming from the immobilization of Russian Sovereign Assets."
The statement from the G7 added, “Our aim is to begin disbursing the funds by the end of the year,” following a meeting among the group's finance chiefs in Washington. The ministers disclosed that these funds would be disbursed via a series of bilateral loans starting on December 1 and continuing through the end of 2027.
Recently, US President Joe Biden unveiled a “historic decision” to “provide $20 billion in loans to Ukraine that will be paid back by the interest earned from immobilized Russian sovereign assets.”
Earlier, UK Chancellor of the Exchequer Rachel Reeves announced that the UK would issue a £2.26 billion loan to Kiev under a similar framework.
Additionally, the European Parliament approved a €35 billion loan for Ukraine, also backed by revenues from frozen Russian assets.
Reports indicate that Kiev's Western allies are attempting to expedite negotiations over these loans due to concerns that U.S. aid to Ukraine might diminish if Donald Trump secures victory in the upcoming November 5 presidential election. The Republican nominee has consistently threatened to reduce assistance to Ukraine if elected.
The Russian Embassy in the US reacted to Biden's announcement on Thursday, stating that “theft [has been] elevated here to the rank of state policy.”
On the same day, Russian Finance Minister Anton Siluanov warned, “if Western countries have begun utilizing the income from the frozen Russian reserves, we will do exactly the same.” He further added, “We have frozen money from ‘unfriendly’ companies and organizations.”
Anna Muller contributed to this report for TROIB News
