G7 partner countries have finally approved a loan to Ukraine in the amount of $50 billion using income from frozen assets of the Russian Federation.
Points of attention
- The G7 countries have approved a $50 billion loan to Ukraine using frozen assets of the Russian Federation.
- The loan proceeds will be allocated towards budgetary, military, and reconstruction assistance in Ukraine.
- The United States, EU countries, the UK, Canada, and Japan will contribute funds towards the $50 billion loan.
- The allocation of the loan is structured to ensure repayment from profits generated by over $280 billion in blocked funds, most of which are in Europe.
- The EU Council has also approved a macro-financial loan of 35 billion euros to Ukraine, utilizing emergency proceeds from frozen Russian assets in the EU.
What is known about the G7 agreeing on a $50 billion loan to Ukraine
Journalists of the publication note that the agreement of the G7 countries opens the fastest way for the transfer of critically needed loan funds to Ukraine.
Today, we, the leaders of the G7 countries, have reached consensus on how to provide approximately $50 billion in Emergency Revenue Acceleration (ERA) loans to Ukraine. The loan proceeds will be distributed through several channels to support budgetary, military and reconstruction assistance to Ukraine, — the G7 representatives said in a statement.
The agreement was adopted after the United States and partners resolved problematic issues related to the structure of such a loan and guarantees for its repayment.
According to the agreement reached, Ukraine will receive $20 billion in loan funds from the United States. EU countries must allocate another 35 billion euros to Ukraine.
$3 billion is expected from the UK. In addition, part of the funds should be provided by Canada and Japan.
The US, EU and other G7 countries will provide Ukraine with a loan that will be repaid with profits from some $280 billion in blocked funds, most of which are in Europe.
What is known about funds for Ukraine based on income from frozen assets of the Russian Federation
On October 23, the EU Council finally adopted, according to a written procedure, the allocation of a macro-financial loan to Ukraine in the amount of 35 billion euros, payments and servicing for which will be made using emergency proceeds from Russian assets frozen in the EU.
At the same time, the G7 countries intend to maintain frozen Russian sovereign assets even after the end of the Russian war against Ukraine.
