The Group of Seven (G7) will likely finalize a framework agreement for a $50 billion loan for Ukraine backed by frozen Russian assets revenue by October, EU Economic Commissioner Paolo Gentiloni said on July 25.
The European Union's top diplomat, Josep Borrell, announced on July 22 that Ukraine is expected to receive the first transfer of $1.5 billion in payments from Russian frozen assets at the beginning of August.
The sum, which Ukraine hopes to receive by the end of the year before a potential return of Donald Trump to the White House, includes a $20-billion pledge by the U.S. and the EU each, Kyodo News wrote.
Saudi officials reportedly made "veiled threats" to Group of Seven (G7) nations hinting that the kingdom would sell some European debt holdings if Western allies seized about $300 billion in frozen Russian assets, Bloomberg reported on July 9, citing its sources.
"We need to re-learn how to champion the escalation game," Sikorsky said during a lecture at the Ditchley Foundation in the U.K. "(Russian dictator Vladimir) Putin has already written them (the frozen assets) off, he does not expect to get them back. But he also doesn’t think we have the fortitude to take hold of them either. So far, we have proven him right."
"We have a process in order to make this work quickly. The first tranche of money will come next week, in July. The second will come some months later," Josep Borrell said during the press briefing in Luxembourg.
The EU has developed a legal workaround to prevent Hungary vetoing a move to use profits from frozen Russian assets to aid Ukraine, the Financial Times reported on June 24.
Ukraine will receive the first payment of 1.5 billion euros ($1.6 billion) from the profits of Russian assets frozen in the EU "before the summer break," EU Trade Commissioner Valdis Dombrovskis said on June 21.
The following is the June 19, 2024 edition of our Ukraine Business Roundup weekly newsletter. To get the biggest news in business and tech from Ukraine directly in your inbox, subscribe here. The Group of Seven (G7) leaders confirmed on June 13 a plan to provide Ukraine with a $50
The new Group of Seven (G7) plan to fund Ukraine using profits from frozen Russian assets is a “breakthrough,” but Ukraine’s goal is still to seize the full worth of the assets, said experts speaking at a panel event in Kyiv discussing Russian asset seizure on June 17. “This
If Ukraine is going to defeat Russia and rebuild itself after the war, it will need huge sums of money, probably exceeding what Western electorates and politicians are willing or able to provide. The good news is that there is a massive pot of non-Western money already available: the $300
The loan should be repaid using interest from some $300 billion in frozen Russian assets.
"We need to make the states that support terror understand that they will pay for it," President Volodymyr Zelensky said on June 13 during a G7 summit in Italy.
"We have an agreement," a French presidency official said, ahead of a summit in Italy, which starts on June 13.
A final agreement on the issue is expected at a G7 summit in Apulia, Italy, on June 13-15, which President Volodymyr Zelensky will attend.
Ukraine will receive 1.5 billion euros ($1.6 billion) in Russian frozen assets revenue in July and 1.9 billion euros ($2 billion) under the Ukraine Facility already this month, European Commission President Ursula von der Leyen said on June 11.
U.S. President Joe Biden announced on June 9 that he had reached an agreement with French President Emmanuel Macron on using the profits from frozen Russian assets to support Ukraine, Radio Free Europe/Radio Liberty (RFE/RL) reported.
According to AFP, the U.S. is pushing the G7 to endorse a loan for Ukraine of up to $50 billion, secured by interest on the frozen assets.
The U.S. has proposed that a $50 billion loan to Ukraine could be repaid by profits from frozen Russian assets, on the condition that the EU agrees to extend sanctions against Russia until the end of the war, the Financial Times reported on June 5, citing a leaked EU discussion paper.
Estonia’s parliament enacted a law on May 15 enabling the use of frozen Russian assets to compensate Ukraine for the damages caused by Russia’s war. Kyiv and its Western allies have discussed using around $300 billion in Russian assets held in Western accounts to support Ukraine. As of
President Volodymyr Zelensky will participate in the upcoming G7 summit, Italian Prime Minister Giorgia Meloni said on June 2, according to the Italian news outlet ANSA.
The legal framework within which the funds will be transferred is still in progress, according to David O'Sullivan. The EU sanctions envoy hopes that the decision will be made in "a few weeks."
"Although the chosen method of compensation is innovative, it aims to protect the prohibition of aggression as a fundamental rule of international law," Alar Karis said in a statement.
Hungary is holding up legislation that would allow the European Union to send billions of dollars in profits from frozen Russian assets for Ukrainian aid, according to a report by the Financial Times.
Ukraine's Western partners and other allies froze around $300 billion in Russian assets at the start of the full-scale invasion in 2022. Roughly two-thirds are held in the Belgium-based financial services company Euroclear.
The decree would enable Russian citizens, companies, and the central bank to appeal to courts that the seizure of their assets is unjustified. In turn, the Russian government could offer U.S. assets in Russia as compensation.
Russian President Vladimir Putin is trying to revive the Soviet Union, but two can play this game. To complete the Kremlin’s grotesque historical reenactment, the West should launch a new economic Cold War in response. In addition to the war of aggression waged against the civilians and cities of
The European Commission said that the "resources will be available to support Ukraine starting from July 2024, with bi-annual payments."
"Up to 3 billion euros ($3.26 billion) (could be raised) only this year, 90% goes for Ukraine's military. Russia must pay for its war damages," Czech Foreign Minister Jan Lipavsky said.
Washington's proposal envisions borrowing against future profits from the frozen assets and transferring the money to Kyiv upfront from a Group of Seven (G7) loan.
The G7 finance ministers are set to meet on May 24, where they will work out the details to come to a final decision before a summit in Italy in June.
"We're one step closer to setting a historic precedent in Europe," said Prime Minister Kaja Kallas.
(Updated: )
