The G7 reaches an agreement to give Ukraine “a large loan” financed with assets frozen to Russia

He G7during the summit held in Apulia, southern Italy, has reached an agreement to grant Ukraine a loan that will be financed in part with the interests generated by the assets of the Russian central bank that are frozen in the European Union (EU) and especially in Belgium. The loan will be around 46-50 billion of euros, according to various sources.

The state negotiators, known as ‘sherpas’have already reached a “provisional” agreement which must still receive formal approval from each of the leaders, although none are expected to block it. The goal is for the funds to reach Ukraine before the end of the year.

Thus, the G7 collectively commits to provide financing for the kyiv fund, which the G7 states call ‘Extraordinary Acceleration of Income Loans (EPAfor its acronym in English) for Ukraine’.

Using interests in blocked Russian assets as collateral

However, the Government of USA It will be the one that provides the majority of the funds for the loan to Ukraine in which the future interests that will be generated with the Russian assets blocked in Europe will be used as collateral.

There are currently frozen ones all over the world 260 billion euros of Russian central bank funds, most of them in the European Union and particularly in Belgium, which were blocked after Russia launched its invasion of Ukraine in February 2022.

The 260 billion euros of frozen Russian assets generate about 3 billion euros per year in profits, but this amount is insufficient to keep Kiev afloat, since it would only cover the financing needs of the Ukrainian Executive for one month.

For this reason, the G7 has decided to use future interest as collateral for a loan to Ukraine that will be financed mainly by the United States and that seeks to help Zelensky rebuild his country and buy more weapons. G7 members or other interested countries will be able to supplement that fund with their own contributions.