NewsG7 agrees to loan $50 billion to Ukraine using frozen Russian assets

G7 agrees to loan $50 billion to Ukraine using frozen Russian assets

Russian dictator Vladimir Putin
Russian dictator Vladimir Putin
Images source: © PAP | STRINGER

11:43 AM EDT, June 14, 2024

The G7 countries have reached an agreement on using Russia's frozen foreign assets to aid Ukraine, which has been defending itself against the Russian invasion for over two years. This is a loan of $50 billion. Vladimir Putin described this decision as "theft."

The leaders of the G7 decided to allocate $50 billion to Ukraine through a loan secured by the frozen Russian assets. This shows that Putin will pay for the damage he has done, commented European Commission President Ursula von der Leyen.

On Friday morning, Vladimir Putin spoke on the matter. The Russian dictator said that Western countries are trying to find "some legal basis" to justify the use of Russian assets, but "despite all the tricks, theft is still theft and will not go unpunished."

The issue concerns the assets of Russia's central bank, which were frozen after the invasion of Ukraine and held in European banks. Von der Leyen conveyed on Thursday evening that G7 finance ministers are now working out details, such as loan securities with the mentioned Russian funds.

Long road to rebuilding Ukraine after the Russian invasion

After Russia invaded Ukraine in February 2022, the G7 countries and the European Union froze over $270 billion worth of assets of the Russian central bank. In addition, private Russian assets, including properties and yachts of Vladimir Putin's oligarch circle, were seized.

However, the confiscation raises doubts under international law. Therefore, Western countries want to transfer the interest from the frozen Russian assets to Kyiv, which could provide up to $3 billion annually.

Russian assets will remain frozen as long as Russia does not pay for the damages caused to Ukraine, emphasize the finance ministers of the G7 countries. The World Bank estimates that rebuilding Ukraine will cost nearly $500 billion.

On Friday morning, Radosław Sikorski, the head of the Ministry of Foreign Affairs, assessed that the G7 leaders' decision is "a big step in the right direction." "This is a key decision. The West must continue to support Ukraine with what is necessary - weapons and funds for reconstruction," he wrote on the platform X.

The G7 group includes the United States, Canada, the United Kingdom, Germany, Japan, Italy, France, and additionally, the European Union.

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