Tag: Assets

Putin denounces G7 deal on frozen Russian assets

Assets

Moscow, June 14, 2024 (dpa/NAN)  Russian President Vladimir Putin has on Friday blasted an agreement by G7 leaders to use frozen Russian assets to help Ukraine as “theft” and promised retaliation.

He said Western powers were still trying to “create at least some legal basis” for the decision taken on Thursday.

“But in spite all the fuss theft will remain theft. It will not go unpunished,” he said in a speech at the Foreign Ministry in Moscow.

The G7 summit began on Thursday in southern Italy with a deal to lend Ukraine 50 billion U.S. dollars using the interest generated from frozen Russian state assets.

The money is to be made available to Ukraine by the end of the year.

The U.S. government says around 280 billion U.S. dollars of Russian central bank money has been immobilised in Western countries due to sanctions imposed since the full-scale Russian attack on Ukraine more than two years ago.

The bulk of the money is within the European Union.

Kiev is set to use the money to strengthen its defence, pay for the reconstruction of infrastructure and fund the state budget.

But before it can be disbursed teams from the G7 countries Britain, Canada, France, Germany, Italy, Japan and the United States must clarify the outstanding technical and legal details.  (dpa/NAN) (www.nannes.ng)

UMD/EAL

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Edited by Ummul Idris/Ekemini Ladejobi

G7 states agree huge loan for Ukraine using frozen Russian assets

Assets

Bari, Italy, June 13, 2024 (dpa/NAN) G7 states have agreed to lend Ukraine 50 billion U.S. dollars using money generated from frozen Russian state assets, diplomats said on Thursday at the first day of G7 summit in Italy.

War-ravaged Ukraine is to use the loan package to strengthen its military defence against Russia, pay for the reconstruction of infrastructure and funding for Ukraine’s state budget.

The U.S. government says around 280 billion U.S. dollars of Russian central bank money has been immobilised in Western countries due to sanctions imposed since the full-scale Russian attack on Ukraine more than two years ago.

The bulk of the money is within the European Union.

The bloc’s member states recently approved the use of interest income generated from Russian state assets to finance aid for Ukraine.

The Brussels-based financial institution Euroclear, by far the largest holder in the EU of frozen Russian central bank assets – recently said that it had collected around 4.4 billion euros (4.7 billion U.S. dollars) in interest in 2023.

Planning for the structure of the loan package has been under way for months.

The United States had originally campaigned in favour of collecting not only the interest income, but also the frozen assets themselves and using them to provide financial support to Kiev.

Some European capitals, however, had major reservations about this.

G7 leaders are meeting for a summit in southern Italy from Thursday to Saturday.  (dpa/NAN) (www.nannes.ng)

UMD/IKU

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Edited by Ummul Idris/Tayo Ikujuni