The G7 countries adopted a mechanism for transferring a $50 billion loan to Ukraine at the expense of Russia's frozen assets.
Points of attention
- The G7 countries agreed to provide Ukraine with a $50 billion loan from the frozen assets of the Russian Federation.
- The loans will be repaid from the profits from the frozen assets, estimated at 3 to 5 billion euros per year.
- The agreement will provide critical support to Ukraine in the medium term and help cover its financial needs until 2025.
- The USA and the EU plan to provide Ukraine with a loan, which the proceeds from the frozen assets will be used to repay.
- Final technical details will be agreed upon after the summit, but the aid could be used to support Ukraine's defence, economy and recovery.
How will Ukraine receive a $50 billion loan from its partners
It is noted that Ukraine will receive loans from G7 partners, which will be repaid at the expense of profits from the frozen assets of the Russian Federation.
The agreement is expected to provide critical support to Ukraine in the medium term and help cover its financing needs until 2025 and beyond.
The final approval of the mechanism is expected to take place in Italy during the meeting of the G7 leaders.
How do the partners plan to repay the loans granted to Ukraine
It is planned that the USA and the EU will provide a loan to Ukraine, and the funds from the profits from the frozen assets will be used for its repayment.
Loans will be structured differently depending on each participant's internal procedures, and each will bear the risk of granting loans if the frozen assets produce less profit than expected.
The interlocutors of the publication note that the final technical details will be agreed upon after the summit.
The aid can be used to support Ukraine's defense, economy and recovery.
Revenues from frozen assets are estimated at 3 to 5 billion euros per year.
Repayment of the loan depends on how long the assets remain idle so that their windfall can pay it off, a process that will take several years.