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G7 agrees to transfer $50 bln to Ukraine, using interest on frozen Russian assets

G7 agrees to transfer $50 bln to Ukraine, using interest on frozen Russian assets G7 agrees to transfer $50 bln to Ukraine (Getty Images)

The Group of Seven (G7) has agreed to transfer $50 billion to Ukraine, using interest from the frozen Russian assets, according to German Finance Minister Christian Lindner.

"Good news from the G7: another $50 billion for Ukraine. We are using the interest on frozen assets for this purpose - a smart tool that shows Putin (Vladimir Putin, Russian leader - ed.) our unity, helps Ukraine a lot and relieves the burden on budgets,” the minister said.

He adds that they are developing all other details.

According to Bloomberg, the loan to Ukraine will be repaid from the proceeds of the blocked Russian assets. The deal is expected to provide critical support for Kyiv in the medium term. It will help cover the country's financial needs until 2025 and beyond.

The proceeds from Russia's frozen assets are estimated at 3 to 5 billion euros (3.24 to 5.39 billion euros).

“ The EU has already agreed to provide Ukraine the profits twice a year, but the US-led drive that was adopted frontloads the support, while also shielding the aid from political shifts across both sides of the Atlantic in a year of multiple elections,” the media explains.

The repayment will depend on how long Russia's assets remain frozen. The G7 leaders have repeatedly stated that the assets will be blocked until Russia agrees to pay for the restoration of Ukraine.

Russia's frozen assets

Since the outbreak of the full-scale war in Ukraine, the West has frozen about $300 billion of Russian assets. The issue of transferring funds to Ukraine was stalled as some of Kyiv's allies were concerned about reputational and legal risks.

The Financial Times previously reported that the United States was ready to provide Ukraine with a $50 billion loan from the proceeds of Russia's frozen assets, but only if the European Union extended sanctions against Russia indefinitely.

According to the White House, the G7 has made progress on using Russia's frozen assets for the benefit of Ukraine and may reach an agreement as early as today.