Return after paying reparations: G7 intends to freeze Russian assets even after war
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Developed nations of the G7 are planning to keep Russian assets frozen even after the war with Ukraine ends. These assets will only be returned once reparations are paid to Kyiv, citing Nikkei Asia.
According to multiple G7 sources, including senior officials from the European Union, Nikkei reports that G7 leaders are expected to issue a statement on this matter later this month.
"We ... reaffirm that Russia's sovereign assets in our jurisdictions will remain immobilized until Russia ends its aggression and pays for the damage it has caused to Ukraine," said the draft of the leaders' statement, prepared by this year's chair, Italy.
The draft also mentions that the bloc will guarantee Kyiv a loan of $50 billion.
For context, according to the World Bank, Ukraine's total economic, social, and financial losses from the war amounted to $499 billion by the end of 2023.
Western countries have frozen around $300 billion worth of assets from Russia’s Central Bank. The profit generated from these assets is already being directed towards aid for Ukraine.
Euroclear made its first payment of €1.55 billion to Ukraine’s aid fund. The clearinghouse holds €173 billion in funds linked to sanctioned Russian assets, including those of Russia’s central bank.
Moreover, the EU has approved a €35 billion loan to Ukraine backed by profits from Russian assets. In addition, the UK will contribute around $3 billion, and the US will provide approximately $20 billion.
