US applies plan to aid Ukraine using Russia's frozen assets
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Politics
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US applies plan to aid Ukraine using Russia's frozen assets

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Source:  Bloomberg

The USA supported the initiative to issue bonds in the amount of 50 billion dollars at the expense of the frozen assets of the Russian Federation to provide aid to Ukraine.

What about the new US plan to aid Ukraine using Russia's frozen assets is known?

Journalists for the publication note that the plan envisages the unification of $280 billion of the Central Bank of the Russian Federation's assets, which were frozen by the G7 countries and the EU.

More than two-thirds of Russia's frozen assets are blocked in the EU, where they generate about $3.6 billion in net profit a year.

The bond proceeds are said to be nearly equal to $60 billion in U.S. aid, which is still in question because House Republicans delayed it.

The authors of the publication emphasise that Western partners are desperately looking for funds to finance aid to Ukraine at a critical moment in the criminal war unleashed by the Russian Federation.

EU leaders will meet in Brussels on Thursday to discuss using profits from frozen Russian assets to help Ukraine.

The material's authors emphasise that the discussion is only at the initial stage.

Some G7 countries, including Germany and France, expressed caution about the new idea.

These efforts could generate much more than $50 billion. Some EU countries, in particular Estonia, called on allies to be bolder and immediately confiscate assets, the authors of the publication emphasize.

Journalists recall that initially the G7 countries promised that Russian assets would remain frozen until Russia compensates Ukraine for the damages caused.

Over the past few months, Western partners have discussed several options for using the frozen assets.

It was proposed, among other things, to use funds from frozen assets as collateral for raising debt or issuing guarantees against frozen funds.

However, there are disagreements among Western countries regarding the use of the Russian Federation's frozen assets.

Countries fear that they may face legal problems, endanger the stability of the euro and face appropriate measures from the Russian Federation.

What does the US offer?

EU leaders are approaching an agreement on using revenues from frozen assets to finance Ukraine's military needs.

Under plans unveiled this week, the bulk of the windfall would be transferred to the European Peace Facility, mainly through the Belgian Euroclear clearing house.

This mechanism primarily reimburses governments for military purchases going to Ukraine.

The U.S. argument is to develop an option that maximizes revenues from frozen assets and projects the value of windfalls so that Ukraine can quickly receive more support, the publication said.

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