G7 consolidates Ukraine loan funded by interest on 'stolen' Russian assets
The G7 has reached an agreement to provide a loan to Kiev supported by ‘stolen’ Russian assets. In response, Moscow has cautioned that it will leverage frozen Western funds in a similar fashion. Read Full Article at RT.com.
TroibNews 
Kiev could see its first drawdown as soon as December, with warnings from Moscow indicating that it will reciprocate the move by utilizing frozen Western funds.
Leaders from G7 nations have reached an agreement to lend billions to Ukraine, backed by earnings accrued from Russian sovereign assets that have been frozen by Western countries. In June, the group pledged a total of $50 billion in loans to Kiev, sourced from these frozen assets.
Following the escalation of the conflict in Ukraine in February 2022, the US and its allies have blocked approximately $300 billion in assets belonging to the Russian central bank. Most of these funds, roughly €197 billion, are under the custody of Euroclear, a clearinghouse based in Brussels. It was estimated that the frozen Russian assets generated around €3.4 billion in interest as of mid-July.
On Friday, the G7 countries affirmed that the loans for Ukraine “will be serviced and repaid by future flows of extraordinary revenues stemming from the immobilization of Russian Sovereign Assets.” The announcement elaborated, “Our aim is to begin disbursing the funds by the end of the year,” following a meeting of the group’s finance ministers in Washington. They specified that the funds would be distributed through a series of bilateral loans starting as soon as December 1 and extending until the end of 2027.
On Wednesday, US President Joe Biden announced 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.”
Just a day prior, UK Chancellor of the Exchequer Rachel Reeves revealed that London would provide a £2.26 billion loan to Kiev using a similar structure.
Additionally, the European Parliament approved a €35 billion loan for Ukraine, also backed by revenues generated from frozen Russian assets.
Reports suggest that Ukraine's Western supporters are seeking to expedite loan negotiations due to concerns that aid from Washington could diminish if Donald Trump wins the upcoming presidential election on November 5. The Republican nominee has consistently threatened to reduce support for Ukraine if he takes office.
In response to Biden’s announcement, the Russian Embassy in the US remarked on Thursday that “theft [has been] elevated here to the rank of state policy.”
On the same day, Russian Finance Minister Anton Siluanov cautioned that “if Western countries have begun utilizing the income from the frozen Russian reserves, we will do exactly the same,” emphasizing that “we have frozen money from ‘unfriendly’ companies and organizations.”
Anna Muller contributed to this report for TROIB News
Leaders from G7 nations have reached an agreement to lend billions to Ukraine, backed by earnings accrued from Russian sovereign assets that have been frozen by Western countries. In June, the group pledged a total of $50 billion in loans to Kiev, sourced from these frozen assets.
Following the escalation of the conflict in Ukraine in February 2022, the US and its allies have blocked approximately $300 billion in assets belonging to the Russian central bank. Most of these funds, roughly €197 billion, are under the custody of Euroclear, a clearinghouse based in Brussels. It was estimated that the frozen Russian assets generated around €3.4 billion in interest as of mid-July.
On Friday, the G7 countries affirmed that the loans for Ukraine “will be serviced and repaid by future flows of extraordinary revenues stemming from the immobilization of Russian Sovereign Assets.” The announcement elaborated, “Our aim is to begin disbursing the funds by the end of the year,” following a meeting of the group’s finance ministers in Washington. They specified that the funds would be distributed through a series of bilateral loans starting as soon as December 1 and extending until the end of 2027.
On Wednesday, US President Joe Biden announced 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.”
Just a day prior, UK Chancellor of the Exchequer Rachel Reeves revealed that London would provide a £2.26 billion loan to Kiev using a similar structure.
Additionally, the European Parliament approved a €35 billion loan for Ukraine, also backed by revenues generated from frozen Russian assets.
Reports suggest that Ukraine's Western supporters are seeking to expedite loan negotiations due to concerns that aid from Washington could diminish if Donald Trump wins the upcoming presidential election on November 5. The Republican nominee has consistently threatened to reduce support for Ukraine if he takes office.
In response to Biden’s announcement, the Russian Embassy in the US remarked on Thursday that “theft [has been] elevated here to the rank of state policy.”
On the same day, Russian Finance Minister Anton Siluanov cautioned that “if Western countries have begun utilizing the income from the frozen Russian reserves, we will do exactly the same,” emphasizing that “we have frozen money from ‘unfriendly’ companies and organizations.”
Anna Muller contributed to this report for TROIB News
