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G7 leaders decide to give $50bn to Ukraine from frozen Russian assets

Saturday, 26 October 2024 6:10 AM [ Last Update: Saturday, 26 October 2024 6:17 AM ]

Participants pose for a group picture at the G7 Defense Ministers meeting in Naples, Italy on October 19, 2024. (Photo by Reuters)

Leaders of the Group of Seven (G7) wealthy countries have agreed to give $50 billion "in loans" to Ukraine from Russia's frozen assets.

“Today, we, the Leaders of the Group of Seven (G7), have reached a consensus on how to deliver approximately $50 billion in Extraordinary Revenue Acceleration (ERA) loans to Ukraine,” the White House announced in a statement, saying the money will be available by year-end for economic and military aid.

On Wednesday, US Treasury Secretary Janet Yellen and Ukrainian Finance Minister Serhiy Marchenko signed an agreement for a US loan commitment of $20 billion.

Yellen claimed the Russians will “bear the costs of its illegal war, instead of taxpayers” in the West.

The European Union -- namely France, Germany and Italy -- committed to a separate $20 billion loan - but to be reimbursed from the Russian money - and the remaining $10 billion was split among Britain, Canada and Japan.

The repayment of the loans will be made with "earnings" from over $300 billion of Russia’s deposits that have been seized by Western countries since Moscow launched its special military operation in Donbas in February 2022.

“These loans will be serviced and repaid by future flows of extraordinary revenues stemming from the immobilization of Russian Sovereign Assets,” the G7 statement said.

“Our aim is to begin disbursing the funds by the end of the year,” G7 finance ministers said, adding, “We will stand by Ukraine for as long as it takes.”

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The US announced it would give Kiev the $20 billion loan in December, with the timing meant to protect the loan funds from a potential cancellation should Republican candidate Donald Trump win the 2024 US presidential election against Democratic Kamala Harris.

The new US president will take office in January 2025. Trump has vowed to “get out” of the US-led war in Ukraine.

Despite the repeated warnings by Russian officials that backing Kiev would only prolong the war, the US-led Western countries have been providing Ukraine with vast diplomatic and financial support, sending the Kiev forces huge shipments of arms and munitions.

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