Espreso. Global

G7 to allocate $50 billion to Ukraine from frozen Russian assets, confirms German Finance Minister

13 June, 2024 Thursday
18:22

German Finance Minister Christian Lindner has confirmed that the G7 countries have agreed to allocate $50 billion from the proceeds of frozen Russian assets to Ukraine

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He wrote about this on Twitter on June 13.

"Good news from the G7: Another $50 billion for Ukraine. We're using interest from frozen assets – a smart move that shows our unity against Putin, provides significant help to Ukraine, and eases the burden on our budgets. We're now working out the details," Lindner stated.

Earlier, AFP reported that the Group of Seven (G7) had agreed to allocate $50bn to Ukraine from Russia's frozen assets.

The publication notes that this information was provided by France. Ukraine should receive the money by the end of 2024.

"G7 leaders agree to unlock $50 billion for Ukraine by the end of 2024," the report said.

Bloomberg notes that the technical details of the agreement will need to be finalised after the G-7 summit, which will take place on 13-15 June in Italy. According to a French official, who spoke on condition of anonymity, it may take some time to conclude a final agreement.

Confiscation of Russian assets

On November 30, the US Senate introduced a bill to confiscate Russian assets. By January 11, the Biden administration backed the idea, supporting the transfer of Russia assets to Ukraine.

Russia warned that confiscating its frozen assets could cost the West at least $288 billion in lost assets and investments. Moscow also threatened retaliation.

On January 23, Belgium's ambassador to the US, Jean-Arthur Régibeau, stated that Western countries should collectively decide on confiscating frozen Russian assets, most of which are held in Brussels' Euroclear.

The next day, the US Senate committee approved a bill to confiscate Russian assets and transfer them to Ukraine.

By January 30, the Committee on Political Affairs of the Parliamentary Assembly of the Council of Europe adopted a draft resolution to confiscate frozen Russian assets and allocate them to a fund for Ukraine's restoration.

Europe holds €191 billion of Russia's €260 billion in frozen foreign assets. The €4.4 billion profit from these assets in 2023 is intended for Ukraine.

On February 12, the Council of the EU decided on a mechanism to use profits from frozen Russian assets in the EU for Ukraine.

On May 7, German Chancellor Olaf Scholz supported using about 90% of profits from frozen Russian assets for Ukraine's defense needs.

Finally, on May 8, EU ambassadors agreed to direct revenues from frozen Russian assets to Ukraine’s reconstruction and defense against the aggressor.

The European Commission says Ukraine will receive the first payment in July 2024.

The G7 is discussing the possibility of a loan for Ukraine against the proceeds of frozen Russian assets.


 
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