G7 to provide Ukraine $50 billion in loans backed by frozen Russian assets

The Group of Seven (G7) has reached an agreement to provide Ukraine with approximately $50 billion in loans backed by the revenue from foreign Russian assets, the G7 announced on Oct. 25.

"Our aim is to begin disbursing the funds by the end of the year," a statement from the G7 leaders read.

During the G7 summit in Italy in June, G7 leaders publicly confirmed an agreement on the plan to provide Ukraine with a $50 billion loan. Officials said shortly thereafter that the plan would be finalized in October.

"Today, we, the Leaders of the Group of Seven (G7), have reached a consensus on how to deliver approximately $50 billion in Extraordinary Revenue Acceleration (ERA) loans to Ukraine," the Oct. 25 statement reads.

"These loans will be serviced and repaid by future flows of extraordinary revenues stemming from the immobilization of Russian Sovereign Assets, in line with G7 respective legal systems and international law. "

The funds will support Ukraine's economic, defense, and reconstruction needs.

While Western countries have frozen $300 billion in Russian assets, they can only access the annual income generated by these funds, approximately $3.2 billion. These profits will back the $50-billion loan to Kyiv, while the vast majority of the assets are frozen in European countries.

Speaking at the G7 summit in June, President Volodymyr Zelensky called on G7 leaders to back the $50-billion plan but also urged the creation of a mechanism for the full confiscation of $300 billion in frozen Russian funds.

According to media reports on Oct. 22, the G7 plans to keep the Russian assets immobilized even after the war against Ukraine ends.

Kamyshin: Drone and missile deep strikes into Russia — Ukraine has know-how, needs money

Ukraine says it has the know-how to produce more much-needed drones as well as missiles for strikes deep into Russia, and all it needs is financial backing from Western allies. “We’ve got all the knowledge, we’ve got all the capabilities in place,” Alexander Kamyshin, advisor to President Volodymyr…

The Kyiv IndependentAsami Terajima

Source link

Related posts:

Ukraine war latest: US to provide Ukraine with $800 million to boost domestic long-range capabilities UK to provide Ukraine with $2.9 billion military loan, to be repaid with proceeds from frozen Russian assets European Council says Russian assets should remain frozen until end of war, payment of reparations EU approves 35-billion-euro loan for Ukraine using frozen Russian assets Ukraine war latest: Ukrainian drone strikes oil depot in Russia; Ukrainian volunteers in Poland sign contracts with Armed Forces Ukraine Business Roundup — Ukraine debates who serves and who doesn’t Zelensky unveiling victory plan on Oct. 16: part will be disclosed only to parliamentary leaders, top lawmaker says “War tax” on Russian LNG is key to starving Kremlin’s war chest