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G7 Leaders To Engineer A $50 Billion Loan For Ukraine: The Loan Will Be Backed By Frozen Russian Assets 






Leaders of wealthy G7 countries have decided to lend Ukraine $50B using frozen assets from Russia’s central bank since the beginning of the war. According to US President Joe Biden, the loan will reach Ukraine before the end of the year.

 

G7 leaders are currently attending a summit in Italy, where they have discussed arranging a $50B loan to support Ukraine. Boosting further support for Ukraine to build a strong resistance in its third year of war has been the core agenda of this year’s G7 summit. To provide the loan, frozen assets of the Russian Central Bank, to which G7 countries have access, will be used as collateral.

 

When Moscow attacked Ukraine for the first time, Russia’s central bank assets worth as much as $260 Billion, which were outside Russia at that time, were frozen immediately. The loan will be arranged by using the profits generated from the frozen $260 Billion of Russia’s assets.


Although it sounds easy to just lend the whole $260 Billion to Ukraine directly, it’s more complicated. Countries usually have the right to freeze funds when deemed appropriate. However, to fully confiscate another country’s assets, an array of judicial procedures and legislation are required.

 

On Friday, the G7 leaders are expected to discuss simplifying the process to confiscate Russia’s immobile funds to which each countries have access. Volodymyr Zelenskyy said having access to the loan through Russia’s assets will be a vital step forward in providing sustainable support for Ukraine in winning this war.”

 

 

 

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