Oleg Davigora22:14, 12.06.24

France, which chairs the G7, said the Group of Seven leaders had reached an agreement to use the proceeds of frozen Russian assets for Ukraine.

At stake is a political agreement to provide Kyiv with aid in the amount of 50 billion dollars / photo REUTERS

The leaders of the “Big Seven” agreed to provide Ukraine with $50 billion through the use of frozen Russian assets by the end of the year, the French president announced on Wednesday, June 12.

“We have an agreement,” said the president’s representative on the eve of the G7 Summit in Italy on Thursday, which will be dedicated to supporting Kyiv’s fight against the Russian invasion, writes Le Monde.

G7 leaders sought to negotiate a deal to use interest income from Russia’s central bank’s $325 billion in frozen assets to help Kyiv, using the proceeds as collateral for a loan of up to $50 billion.

“Initially, it was an American initiative,” the representative of the French president said, adding that theoretically the loan to Ukraine would be repaid at the expense of “income from frozen Russian assets.”

“But if for one reason or another the Russian assets are unfrozen or the income from Russian assets turns out to be insufficient to finance the loan, then we will have to think about how to share the burden” of the loan, the interlocutor of the agency said.

According to Bloomberg, the technical details of the agreement will have to be finalized after the G7 leaders’ summit, which will be held in Italy this week. That means it could take some time to reach a final deal, said the French official, who spoke on condition of anonymity.

The French view followed comments from the US on Tuesday that the leaders were close to reaching a political agreement. People familiar with the negotiations in both countries said the goal would be to pay the funds by the end of the year.

G7 members warned that beyond any agreement – which is expected to be one of the main outcomes of the summit – some of the remaining questions about how it will work are complex.

Use of Russian assets

Officials on both sides of the Atlantic have been debating for months how to use the proceeds from about $280 billion in frozen Russian central bank funds, most of which are immobilized in Europe.

Revenues from frozen assets are estimated at 3 to 5 billion euros per year. The EU has already agreed to provide Ukraine with twice-yearly income, but the US is urging its G7 allies to find ways to provide Kyiv with more immediate support.

Difficult issues that will need to be resolved include figuring out how to structure any loans to Ukraine, how risks are shared among allies and ensuring that assets remain frozen for years to come.

US National Security Adviser Jake Sullivan told reporters that discussions are ongoing and moving forward.

“What we are working on is not a general structure, but quite specific in terms of what it will entail,” he said. “But, of course, then it will be necessary to work out the main operational details of everything agreed in Italy, and the leaders will instruct experts to work it out in a certain time frame,” Sullivan added.

(C)UNIAN 2024