According to the publication, the plan is being discussed among the Group of Seven nations, with the US pushing to have an agreement when G-7 leaders meet in Italy in June.
The plan signals a strong show of support from Washington after Congress approved $61 billion in assistance for Kyiv in April that had been held up for months. The Congress also voted to confiscate the $6 billion in frozen Russian assets currently held in US banks, which form part of the larger $300 billion frozen by G7 countries.
According to the G7 plan revealed by Bloomberg:
- The US is leading talks with G-7 allies to provide up to $50 billion in aid to Ukraine, with the goal of reaching an agreement at the June G-7 meeting in Italy.
- The massive aid package would be repaid using the windfall profits generated from frozen Russian sovereign assets, mostly held in Europe, which are accruing interest.
- About €159 billion of frozen Russian is held by Euroclear. These assets could grow to €190 billion by 2028 as they mature, generating around €5 billion in annual windfall profits.
- One option involves issuing $50 billion in bonds backed by the windfall profits from the frozen assets.
- The US is pushing for this agreement partly to shield allied assistance to Ukraine from potential political shifts in the US and Europe.
- The plan would replace an EU-only proposal to transfer windfall profits from Euroclear to support Ukraine twice a year, which is expected to be agreed upon this month.
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