G7 to create fund to support Ukraine using proceeds from frozen Russian assets
The G7 countries will set up a fund to support Ukraine using the proceeds of frozen Russian assets.
Source: Nikkei
Details: The fund will be created under the auspices of an international organisation, such as the World Bank. The United States, the United Kingdom, Japan and other countries will make contributions in the form of loans. Profits from the investment of frozen assets will be used to repay these loans.
The Fund will provide assistance to Ukraine in the form of donations, so the country will not be obliged to repay the money.
The G7 leaders intend to reach an agreement on this issue at the summit in Italy.
For reference: The total amount of Russian assets frozen by the West is US$300 billion. Two-thirds of the frozen assets are located in the EU, with the majority of them belonging to the Belgian clearing centre Euroclear.
Background:
- Ursula von der Leyen, President of the European Commission, said that the first €1.5 billion of proceeds from frozen Russian assets would be transferred to Ukraine in July.
- Ukraine is trying to obtain information about the accounts in a Belgian bank that hold the money of the Central Bank of the Russian Federation in order to further confiscate these funds in its favour. The amount in question is €190 billion.
- The United States is ready to provide Ukraine with a US$50 billion loan to be repaid with the proceeds of frozen Russian assets if the EU can extend sanctions against Moscow indefinitely.
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