Skip to content
Edit post

Bloomberg: US backs plan to issue $50 billion in bonds from frozen Russian assets

by Rachel Amran March 22, 2024 7:28 AM 2 min read
President Volodymyr Zelensky addresses G7 partners on the two-year anniversary of Russia's full-scale invasion. (President's Office)
This audio is created with AI assistance

Support independent journalism in Ukraine. Join us in this fight.

Become a member Support us just once

The United States proposed to the Group of Seven (G7) countries that they establish a special-purpose vehicle (SPV) to issue $50 billion in bonds from profits generated by frozen Russian assets and use the proceeds to support Ukraine, Bloomberg reported on March 21.

Western countries have immobilized around $300 billion of the Russian central bank's assets since the start of the full-scale invasion. Washington, Brussels, and Kyiv have long discussed legal ways of channeling these funds to aid Ukraine's reconstruction efforts.

The SPV would reportedly employ around $280 billion of these funds and use them to back "freedom bonds." The Group of Seven comprises the U.K., Canada, France, Germany, Italy, Japan, and the U.S.

Earlier this year, G7 countries announced they were developing strategies to issue debt to support Ukraine, utilizing Russian assets as a safety net for repayment.

U.S. President Joe Biden also recently backed U.S. legislation that would allow the confiscation of some frozen Russian funds and funnel them to Ukraine after months of not supporting the outright seizure of the assets.

The Biden administration is under significant pressure to develop new aid pathways as the U.S. Congress continues to drag its feet in passing further aid to Ukraine.

Holdups in U.S. assistance have put a significant strain on Ukraine's efforts to resist Russian aggression, causing ammunition shortages and contributing to the loss of a key front-line city of Avdiivka.

The World Bank assessed early in 2023 that the total cost of Ukraine's reconstruction would amount to $411 billion. Ukrainian Foreign Minister Dmytro Kuleba commented earlier this year that the full amount of Russian assets could cover over 80% of recovery costs.

Ukraine war latest: Mass attack on Kyiv injures at least 13, including child
Key developments on March 21: * Russian missile attack on Kyiv injures at least 13, including child * Russia continues to redeploy Black Sea Fleet from Crimea, Ukraine promises ‘new steps’ to target it * Estonia unveils $22 million defense package * Official: Russia fires at occupied Kherson Ob…
Support independent journalism in Ukraine. Join us in this fight.
Freedom can be costly. Both Ukraine and its journalists are paying a high price for their independence. Support independent journalism in its darkest hour. Support us for as little as $1, and it only takes a minute.
visa masterCard americanExpress

News Feed

11:32 PM

Trump praises House speaker after vote on Ukraine aid.

Former U.S. President and presumptive Republican nominee Donald Trump voiced support for House Speaker Mike Johnson, who allowed a vote on military aid for Ukraine after months of delays, the Guardian reported on April 23.
Ukraine Daily
News from Ukraine in your inbox
Ukraine news
Please, enter correct email address
5:35 PM

Latvian schools to stop teaching Russian as foreign language.

Children in Latvia will no longer learn Russian as a foreign language in schools from 2026, but instead will be required to learn a language of the European Union or the European Economic Area, Latvia's Education Ministry announced on April 23.
MORE NEWS

Editors' Picks

Enter your email to subscribe
Please, enter correct email address
Subscribe
* indicates required
* indicates required
Subscribe
* indicates required
* indicates required
Subscribe
* indicates required

Subscribe

* indicates required
Subscribe
* indicates required

Subscribe

* indicates required
Subscribe
* indicates required
Successfuly subscribed
Thank you for signing up for this newsletter. We’ve sent you a confirmation email.