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G7: Russia owes Ukraine war reparations, estimated at $468 billion today

G7: Russia owes Ukraine war reparations, estimated at $468 billion today Illustrative photo: participants of the G7 summit (Getty Images)
Author: Daryna Vialko

Russia must put an end to its illegal war of aggression and pay for the damage it has caused to Ukraine. Currently, the damage is estimated at nearly $500 billion, according to a statement in a joint communiqué of the G7 countries after the summit in Italy.

The G7 leaders said that Russian assets will remain frozen until Russia ends the war in Ukraine and pays Kyiv's damages. Or these funds will be transferred to Ukraine for recovery.

According to the World Bank, the amount of damage to Ukraine is currently estimated at $486 billion. However, this amount is increasing every day.

"It is not right for Russia to decide if or when it will pay for the damage it has caused in Ukraine. Russia’s obligations under international law to pay for the damage it is causing are clear, and so we are continuing to consider all possible lawful avenues by which Russia is made to meet those obligations," the statement says.

Ukraine's losses due to Russia's invasion

After Russia's full-scale invasion, Ukraine suffered serious economic losses due to the destruction of infrastructure, reduced production and exports, and loss of foreign investment.

One of the ways to compensate for the losses is to use frozen Russian assets. Russia's frozen assets constitute a significant portion of its financial reserves and are one of the main means of economic pressure used by Western countries in response to Russia's aggressive actions.

Yesterday, the G7 countries made progress on the issue of using the frozen assets of the Russian Federation in favor of Ukraine.