According to the Financial Times, Ukraine has every chance to receive a $50 billion loan from the United States, which will be repaid with profits from frozen Russian assets. However, for this, the European Union must extend the sanctions against Moscow for an indefinite period — this is currently Washington's only demand.
Points of attention
- The US is ready to send Ukraine $50 billion, which will be repaid using profits from frozen Russian assets.
- One of the United States' demands is that the European Union continue indefinitely its sanctions against Moscow.
- Large-scale financial assistance to Ukraine depends on a decision on the use of revenues from frozen Russian assets.
- Ukraine's G7 partners are actively working on how to implement the idea of using the Russian Federation's frozen assets to support Ukraine.
- The US hopes to agree on this loan before the G7 summit in Italy, where financing frozen assets could become a key issue.
New large-scale US aid to Ukraine depends on the EU's decision
The White House is actively pushing for official Brussels to extend sanctions against Russian state assets, which expire every six months, until the end of the war.
As the journalists managed to find out, official Washington does not want to be the only one responsible for payments on loans granted to Ukraine.
It is worth paying attention to the fact that any changes in the EU sanctions regime require the approval of all leaders, including Hungarian Prime Minister Viktor Orban, who blocks most important decisions against the Russian Federation.
US officials hope to reach an agreement before the start of the G7 summit in Italy next week.
During this meeting, they will discuss the mechanism for financing with the proceeds of frozen Russian assets, which will probably become the central element of Ukraine's support.
The states want to give Ukraine a loan, most likely along with other members of the Group of Seven, roughly equal to the estimated "surplus profits" from hundreds of billions of dollars of frozen Russian assets.
According to insiders, it is about 50 billion dollars.
Ukrainian allies are discussing options for using Russia's frozen for Ukraine
Brent Neiman, assistant to the head of the US Treasury Department for International Finance, recently stated this.
Ukraine's G7 partners are making efforts to consider all possible ways by which frozen Russian assets can be used to support Ukraine, he emphasised.
Brent Neiman also drew attention to the fact that recently the members of the European Union plan to use the income from the frozen assets of the Russian Federation to help Ukraine.
We and our partners are currently making progress in studying ways to take this initiative as a basis and simply now provide Ukraine with an even larger amount of funds, he concluded.
