"Our aim is to begin disbursing the funds by the end of the year," G7 leaders announced on Oct. 25. The loan will support Ukraine's economic, defense, and reconstruction needs.
Daleep Singh, the White House deputy national security adviser on international economics, said that Joe Biden's administration intends to split the funds between helping the Ukrainian economy and the military.
G7 leaders will issue a joint statement in October saying that "Russia's sovereign assets will remain immobilized until Russia ends its aggression and pays for the damage it has caused to Ukraine," according to the draft prepared by this year's chair, Italy.
The loan will be allocated to Ukraine's military spendings. Kyiv will be able to invest in key equipment to fight Russia, such as artillery, air defense, and wider equipment support.
The European Council reiterated it would adhere to the "security and defense policy" of "certain member states" regarding the use of revenues generated from the frozen assets, and added it would continue to "address all relevant legal and financial aspects."
"Russia must pay for the destruction it caused," von der Leyen said.
"This is another evidence of the allied trust in Czechia and our ammunition initiative. It is a unique opportunity to support Ukraine while using assets originally belonging to Russia and saving on public finances of European countries," Czech Defense Minister Jana Cernochova said.
According to FAZ, Ukraine will receive previously approved assistance, but additional requests from the German Defense Ministry will not be supported.
"There is no better symbol or use for the Kremlin's money than to make Ukraine and all of Europe a safer place to live," said European Commission President Ursula von der Leyen.
The Group of Seven (G7) will likely finalize a framework agreement for a $50 billion loan for Ukraine backed by frozen Russian assets revenue by October, EU Economic Commissioner Paolo Gentiloni said on July 25.
The European Union's top diplomat, Josep Borrell, announced on July 22 that Ukraine is expected to receive the first transfer of $1.5 billion in payments from Russian frozen assets at the beginning of August.
Saudi officials reportedly made "veiled threats" to Group of Seven (G7) nations hinting that the kingdom would sell some European debt holdings if Western allies seized about $300 billion in frozen Russian assets, Bloomberg reported on July 9, citing its sources.
"We need to re-learn how to champion the escalation game," Sikorsky said during a lecture at the Ditchley Foundation in the U.K. "(Russian dictator Vladimir) Putin has already written them (the frozen assets) off, he does not expect to get them back. But he also doesn’t think we have the fortitude to take hold of them either. So far, we have proven him right."
"We have a process in order to make this work quickly. The first tranche of money will come next week, in July. The second will come some months later," Josep Borrell said during the press briefing in Luxembourg.
The EU has developed a legal workaround to prevent Hungary vetoing a move to use profits from frozen Russian assets to aid Ukraine, the Financial Times reported on June 24.
Ukraine will receive the first payment of 1.5 billion euros ($1.6 billion) from the profits of Russian assets frozen in the EU "before the summer break," EU Trade Commissioner Valdis Dombrovskis said on June 21.
If Ukraine is going to defeat Russia and rebuild itself after the war, it will need huge sums of money, probably exceeding what Western electorates and politicians are willing or able to provide. The good news is that there is a massive pot of non-Western money already available: the $300
"We have an agreement," a French presidency official said, ahead of a summit in Italy, which starts on June 13.
A final agreement on the issue is expected at a G7 summit in Apulia, Italy, on June 13-15, which President Volodymyr Zelensky will attend.
According to AFP, the U.S. is pushing the G7 to endorse a loan for Ukraine of up to $50 billion, secured by interest on the frozen assets.
President Volodymyr Zelensky will participate in the upcoming G7 summit, Italian Prime Minister Giorgia Meloni said on June 2, according to the Italian news outlet ANSA.
The legal framework within which the funds will be transferred is still in progress, according to David O'Sullivan. The EU sanctions envoy hopes that the decision will be made in "a few weeks."
Hungary is holding up legislation that would allow the European Union to send billions of dollars in profits from frozen Russian assets for Ukrainian aid, according to a report by the Financial Times.
Ukraine's Western partners and other allies froze around $300 billion in Russian assets at the start of the full-scale invasion in 2022. Roughly two-thirds are held in the Belgium-based financial services company Euroclear.
The decree would enable Russian citizens, companies, and the central bank to appeal to courts that the seizure of their assets is unjustified. In turn, the Russian government could offer U.S. assets in Russia as compensation.
The European Commission said that the "resources will be available to support Ukraine starting from July 2024, with bi-annual payments."
The G7 finance ministers are set to meet on May 24, where they will work out the details to come to a final decision before a summit in Italy in June.
"We're one step closer to setting a historic precedent in Europe," said Prime Minister Kaja Kallas.
Increasingly cut off from western banking and financial services, Russia's wealthiest individuals are facing a dilemma when it comes to handing their fortunes to the next generation, according to Bloomberg. Most of the billionaires who were sanctioned have opted to move assets home, the news agency reported.
The following is the May 7, 2024 edition of our Ukraine Business Roundup weekly newsletter. To get the biggest news in business and tech from Ukraine directly in your inbox, subscribe here. Ukraine’s Central Bank eased some wartime foreign exchange restrictions on businesses in what it said was the
The United States is leading talks among the Group of Seven (G7) nations to develop a military aid package to Ukraine worth up to $50 billion, Bloomberg reported on May 3. The package would reportedly be funded by the profits generated by accrued interest on frozen Russian assets.
The following is the April 30, 2024 edition of our Ukraine Business Roundup weekly newsletter. To get the biggest news in business and tech from Ukraine directly in your inbox, subscribe here. Polish farmers finally ended their protests at the Hrebenne-Rava-Ruska border crossing on April 29, effectively lifting a blockade
