St Petersburg, Russia
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The G7 states and the EU want to initiate a loan for the attacked Ukraine worth 50 billion US dollars (46 billion euros).
What’s special: The loan is secured from the interest income from the frozen Russian assets.
After the invasion of Ukraine, Russian assets abroad worth around 322 billion dollars (298 billion euros) were frozen.
The G7 countries and the EU are tapping frozen Russian assets for a loan to Ukraine. They want to help Kiev procure more military and finance the costs of reconstruction.
The $50 billion (€46 billion) loan is special. Because it is secured from interest income generated from the frozen Russian central bank assets. After the start of the war in Ukraine, Russian assets abroad worth around $322 billion (€298 billion) were frozen.
The US wants to contribute $20 billion (18.5 billion euros), said US Treasury Secretary Janet Yellen in Washington. The German Finance Minister Christian Lindner welcomed the decision: “This also clears the way for support from the European Union to the tune of 18 billion euros” – the equivalent of around 20 billion dollars. A further ten billion dollars (9.2 billion euros) are to come from Great Britain, Japan and Canada.
“With the money raised from sanctioned Russian assets, we can help turn the tables on Putin’s war machine. This urgent funding will directly support Ukraine’s defense by using proceeds from the assets that helped fuel Putin’s aggression,” said John Healeythe British defense minister, in a statement.
Putin describes the project as robbery
Ukraine should be able to decide for itself how it uses the money – for example for weapons purchases, reconstruction and the state budget. An agreement between those involved is expected to be reached by the end of the week on the sidelines of the International Monetary Fund’s annual meeting in Washington. Putin sharply criticized the plan and described it as robbery. The G7 decision “will not go unpunished,” he threatened.
In total, some $322 billion (298 billion euros) in Russian assets abroad were frozen as the West imposed sanctions to cripple the Kremlin’s war machine after the 2022 invasion of Ukraine. The $280 billion in funds frozen in Europe is expected to bring in about $3 billion to $5 billion in profits each year, according to the Bloomberg report.
