G7 loan to Kiev supported by interest from 'stolen' Russian assets
The G7 has reached an agreement to provide a loan to Kiev, which will be supported by 'stolen' Russian assets. In response, Moscow has issued a warning that it will deploy frozen Western funds in a retaliatory action. Read Full Article at RT.com
TroibNews 
Ukraine is set to initiate its first drawdown as early as December, with Moscow indicating it will respond in kind by utilizing frozen Western assets.
Leaders of the G7 nations have reached an agreement to lend billions to Ukraine, supported by the earnings derived from Russian sovereign assets currently frozen by Western nations. In June, G7 members committed to a total of $50 billion in loans to Kiev, using these funds.
Since the escalation of the Ukraine conflict in February 2022, the US and its allies have blocked approximately $300 billion in assets belonging to the Russian central bank. A significant portion of these funds, around €197 billion, is held at Euroclear, a Brussels-based clearinghouse, which estimated that these frozen Russian assets generated €3.4 billion in interest by mid-July.
On Friday, representatives of the G7 announced that loans for Ukraine "will be serviced and repaid by future flows of extraordinary revenues stemming from the immobilization of Russian Sovereign Assets."
The statement emphasized, “Our aim is to begin disbursing the funds by the end of the year,” after a meeting of the group’s finance ministers in Washington. They disclosed that this financial support would be delivered through a series of bilateral loans starting on December 1 and continuing until the end of 2027.
On Wednesday, US President Joe Biden revealed 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."
The day prior, UK Chancellor of the Exchequer Rachel Reeves announced that London would extend a £2.26 billion loan to Kiev under a similar arrangement.
Also on Tuesday, the European Parliament approved a €35 billion loan for Ukraine, which would be backed by revenues generated from frozen Russian assets.
Media reports indicate that Kiev’s Western supporters are eager to expedite negotiations for these loans due to fears that US financial aid might dwindle if Donald Trump succeeds in the November 5 presidential election. The Republican nominee has consistently threatened to reduce assistance to Ukraine if he wins.
In response to Biden’s funding decision, 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.” He added, “We have frozen money from ‘unfriendly’ companies and organizations.”
Thomas Evans for TROIB News
Leaders of the G7 nations have reached an agreement to lend billions to Ukraine, supported by the earnings derived from Russian sovereign assets currently frozen by Western nations. In June, G7 members committed to a total of $50 billion in loans to Kiev, using these funds.
Since the escalation of the Ukraine conflict in February 2022, the US and its allies have blocked approximately $300 billion in assets belonging to the Russian central bank. A significant portion of these funds, around €197 billion, is held at Euroclear, a Brussels-based clearinghouse, which estimated that these frozen Russian assets generated €3.4 billion in interest by mid-July.
On Friday, representatives of the G7 announced that loans for Ukraine "will be serviced and repaid by future flows of extraordinary revenues stemming from the immobilization of Russian Sovereign Assets."
The statement emphasized, “Our aim is to begin disbursing the funds by the end of the year,” after a meeting of the group’s finance ministers in Washington. They disclosed that this financial support would be delivered through a series of bilateral loans starting on December 1 and continuing until the end of 2027.
On Wednesday, US President Joe Biden revealed 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."
The day prior, UK Chancellor of the Exchequer Rachel Reeves announced that London would extend a £2.26 billion loan to Kiev under a similar arrangement.
Also on Tuesday, the European Parliament approved a €35 billion loan for Ukraine, which would be backed by revenues generated from frozen Russian assets.
Media reports indicate that Kiev’s Western supporters are eager to expedite negotiations for these loans due to fears that US financial aid might dwindle if Donald Trump succeeds in the November 5 presidential election. The Republican nominee has consistently threatened to reduce assistance to Ukraine if he wins.
In response to Biden’s funding decision, 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.” He added, “We have frozen money from ‘unfriendly’ companies and organizations.”
Thomas Evans for TROIB News
