The G7 finance ministers supported the idea of providing a loan to Ukraine secured by profits from frozen Russian assets. This can provide financing for Ukraine after 2024.
The G7 supports the idea of closing leverage for Ukraine with Russia's frozen assets
It is noted that the G7 Financial chiefs' discussions were based on Washington's proposal to provide Ukraine with a $50 billion leverage, which will be repaid from the profits from the Russian Central Bank's assets of over $200 billion, which are held in the Belgian central securities depository Euroclear.
Finance ministers will present G7 leaders with credit formation options ahead of the summit in June.
The G7 countries want to provide funding for Kyiv with a future perspective, as important elections will be held on both sides of the Atlantic. However, many details of the leverage have not yet been agreed upon, including the amount, who will issue it, who will be the guarantor if Ukraine defaults on its debt, etc., the publication notes.
Minister of Finance of Ukraine Serhii Marchenko estimated the deficit of the Ukrainian budget in 2025 for social and humanitarian needs at "over 10 billion dollars". It would be much more significant if military needs were included in it.
The Ukrainian minister welcomed the progress on the loan guaranteed by profits from Russian assets, but added that for Ukraine it is only a "temporary solution." Therefore, a complete confiscation of Russian assets is required.
EU Council supported the confiscation of profits from Russia's assets in favour of Ukraine
On May 21, the Council of the European Union voted to provide funds to Ukraine from taxable excess profits of frozen Russian assets.
According to the latest data, most of the funds will be directed to the military support of Ukraine.
The Council of the EU has confirmed its consent to the use of proceeds from immobilized assets of the Central Bank of the Russian Federation for the benefit of Ukraine, the official statement of the agency says.
In addition, it is emphasised that annual revenues will reach about 2.5-3 billion euros.
It is also indicated that 90% of the expected revenues will be used for military purposes to support the Armed Forces of Ukraine.
A smaller share — 10% — will go to the restoration and reconstruction of Ukraine.
As mentioned earlier, the permanent representatives of the EU member states approved this initiative on May 8.
