G7 financial leaders approve loan to Ukraine secured by Russian assets
Photo: G7 financial leaders gathered for a summit in Italy (Getty Images)
Finance ministers and central bank governors of the G7 countries began a two-day meeting in Italy on May 24, aiming to agree on providing a loan to Ukraine, guaranteed by future revenues from $300 billion in frozen Russian assets, according to Reuters.
As the agency notes, comments from officials on the eve of the meeting in Stresa, northern Italy, suggest that no precise details on the US plan to provide Ukraine with a loan will emerge.
"We will be putting a proposal to use the windfall profits for the Russian assets for the years to come. So let's compare the proposals. Let's see what is the most convenient, the most efficient, the most rapid proposal that could be put in place," French Finance Minister Bruno Le Maire told reporters before the session's opening.
US Treasury Secretary Janet Yellen stated that the loan could amount to around $50 billion, but the sums have not yet been agreed upon. Other G7 officials involved in the talks expressed caution, citing complex legal and technical aspects that need to be resolved.
On Saturday, Ukrainian Finance Minister Serhiy Marchenko will join the ministers.
German Finance Minister Christian Lindner stated that many questions regarding the loan proposal remain open, and he does not expect the G7 to make any specific decision in Stresa.
In this case, officials will continue negotiations, hoping to make progress by the G7 leaders' meeting in the southern Italian region of Apulia from June 13 to 15.
Earlier, Bloomberg reported that G7 countries are converging on the US plan to use frozen Russian assets and allocate a $50 billion loan. The US aims to use the profits from Russian assets to provide Kyiv with more funds upfront, with future revenues covering these expenses.
Sources used in preparing the material : Reuters, Bloomberg.
