In the coming months, the G7 countries will approve a framework agreement to provide Ukraine with a $50 billion loan secured by proceeds from the frozen assets of the Russian Federation.
Points of attention
- The G7 countries are set to approve a $50 billion loan for Ukraine, utilizing proceeds from frozen assets of the Russian Federation for loan servicing.
- Significant progress has been made in settling technical and legal aspects of the agreement, with an estimated timeline for finalizing the deal by October.
- Ukraine is expected to receive funds from frozen assets through the international depository institution Euroclear, with the first contribution already scheduled for July.
- The $50 billion loan agreement is aimed at supporting Ukraine's economy, with implications for the country's financial stability and growth.
- While there is no unanimous support for the confiscation of Russian assets among the G7, there is agreement on utilizing profits generated by these assets for the loan.
- Stay informed about the developments surrounding the G7's decision to allocate a substantial loan to Ukraine and the potential impact on regional economics.
What is known about the agreement to allocate 50 billion dollars of credit to Ukraine
According to the European Commissioner for Economic Affairs Paolo Gentiloni, a meeting of G7 ministers on this issue was held on Wednesday, July 24.
The European Commissioner emphasized that as a result of this meeting, significant progress was achieved in the settlement of technical and legal aspects regarding the allocation of this loan to Ukraine.
I am confident that we will be able to close the deal by October. "By October, I mean the framework," Gentiloni said.
The article emphasizes that the loan is planned to be serviced at the expense of profits from the frozen assets of the Central Bank of the Russian Federation in the amount of about 300 billion dollars.
Although there is no unanimous support among the G7 for the confiscation of Russian assets, there is agreement on the possibility of using the profits that the assets bring.
What is known about Ukraine's receipt of funds from the frozen assets of the Russian Federation
According to the results of the first half of 2024, Euroclear received 3.4 billion euros in the form of interest income from the investment of blocked Russian assets.
The international depository Euroclear will make the first contribution of approximately EUR 1.55 billion to the European Fund for Ukraine already in July of this year.
Cumulative interest income of Euroclear in January-June this year amounted to 4 billion euros. The company will also pay taxes on income received from Russian assets in January-June in the amount of 836 million euros.
Thus, the net profit of Euroclear, which belongs to the frozen assets of the Central Bank of the Russian Federation, for the first half of the year amounted to 760 million euros.
