Copyright © 2024 Euromaidanpress.com

The work of Euromaidan Press is supported by the International Renaissance Foundation

When referencing our materials, please include an active hyperlink to the Euromaidan Press material and a maximum 500-character extract of the story. To reprint anything longer, written permission must be acquired from [email protected].

Privacy and Cookie Policies.

G7 considers €30 bn Ukraine loan using frozen Russian assets

G7 finance ministers are set to debate a €30 billion loan for Ukraine, considering the legality of using €270 bn in frozen Russian state assets as collateral.
g7 considers 30 bn ukraine loan using frozen russian assets european central bank president christine lagarde flickrmichael wuertenbergswiss-imagech 8414041294_9f1f8a2dc0_b
European Central Bank President Christine Lagarde. Flickr/Michael Wuertenberg/swiss-image.ch
G7 considers €30 bn Ukraine loan using frozen Russian assets

The Guardian reports that divisions over the legality of granting Ukraine a €30 billion loan from €270 billion in seized Russian state assets are expected to surface at this week’s G7 finance ministers meeting in Stresa, northern Italy. Also, the US is actively seeking support for the plan, which aims to aid Ukraine’s reconstruction efforts or supply much-needed arms, marking another significant test of political will regarding Ukraine.

The debate on using frozen Russian state assets for Ukraine has been stalled for over a year, with advocates unable to gain support within G7. The proposal to use these assets as loan collateral has caused rare disagreement between the US and Germany.

Christine Lagarde, the European Central Bank president, raised legal and economic objections to fully seizing the assets last week. However, the US, strongly backed by the UK, is determined to circumvent these objections, as Washington proposes mobilizing frozen Russian assets to provide a large loan to Ukraine, with interest paid from the assets’ annual profits, rather than seizing or confiscating them. Seizing the Russian central bank assets for immediate reparations is ruled out.

Lagarde argued that seizing assets would threaten financial system stability, undermine state immunity, and prompt countries like China and Gulf states to avoid Western reserve currencies, fearing their funds could also be seized.

Before the G7 meeting, the US and UK argue for a €30bn loan to Ukraine, funded by profits from frozen Russian assets, instead of smaller annual sums like €500m. They propose using Russian central bank assets as reversible collateral until reparations are paid. Critics contend this amounts to confiscation. The EU has already struggled to agree on giving Ukraine interest from seized Russian assets.

Read also:

You could close this page. Or you could join our community and help us produce more materials like this.  We keep our reporting open and accessible to everyone because we believe in the power of free information. This is why our small, cost-effective team depends on the support of readers like you to bring deliver timely news, quality analysis, and on-the-ground reports about Russia's war against Ukraine and Ukraine's struggle to build a democratic society. A little bit goes a long way: for as little as the cost of one cup of coffee a month, you can help build bridges between Ukraine and the rest of the world, plus become a co-creator and vote for topics we should cover next. Become a patron or see other ways to support. Become a Patron!

To suggest a correction or clarification, write to us here

You can also highlight the text and press Ctrl + Enter

Please leave your suggestions or corrections here


    Euromaidan Press

    We are an independent media outlet that relies solely on advertising revenue to sustain itself. We do not endorse or promote any products or services for financial gain. Therefore, we kindly ask for your support by disabling your ad blocker. Your assistance helps us continue providing quality content. Thank you!