Ukraine debt deal infographic
Graphic shows Ukraine’s soaring foreign and domestic debt.
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ECONOMY

Russian assets to back Ukraine loan

By Duncan Mil

June 14, 2024 - Leaders of the Group of Seven democracies have agreed to use interest from some $260 billion of frozen Russian assets to give a $50 billion loan to help Ukraine’s war-torn economy.

G7 leaders discussed the details of the deal at their June 13-15 summit in Italy. According to U.S. and French officials, the money could reach Kyiv before the end of the year.

Speaking at a news conference, U.S. President Joe Biden underscored the unity and determination of the G7 leaders, stating that the decision was a “historic agreement and another resolute message to Putin that we stand united and firm.”

Ukraine’s president, Volodymyr Zelensky, expressed his optimism, stating that the provision of a loan through Russia’s assets “is a crucial stride towards providing sustainable support for Ukraine in its battle to overcome the economic challenges of the war.”

Most of the money would be in the form of a loan guaranteed by the U.S. government, backed by profits earned on roughly $260 billion in frozen Russian assets -- the majority held by European Union nations.

Russia’s President Vladimir Putin has denounced the deal, saying leaders in the West were trying to come up with “some kind of legal basis” for the asset freezes, “but despite all the trickery, theft is still theft and will not go unpunished.”

The G7 comprises Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. The European Union also participates in all discussions.

Sources
PUBLISHED: 14/06/2024; STORY: Graphic News; PICTURES: Getty Images
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