US ready to provide up to $20 billion (40%) to Ukraine as part of G7 loan (“G7”: USA, Canada, Germany, UK, France, Italy and Japan)Will be repaid from profits from frozen Russian assets, writes Financial Times He quotes sources familiar with the situation.
According to the document, negotiations on the loan are accelerating as Western officials want to provide financial aid to Kiev by the end of the year and realize that Washington’s support for Ukraine could end if Donald Trump wins the US elections in November.
The newspaper notes that G7 members have been discussing the structure of the loan to Kiev for several months: previously the US contribution was expected to be less than $ 20 billion, but eventually Washington plans to provide the full amount. If the EU cannot persuade Hungarian Prime Minister Viktor Orban to lift the veto to expand the European Union’s anti-Russian sanctions (this was the American side’s condition for the allocation of aid).
“A final agreement has not yet been reached, and the United States is still consulting with members of Congress and Ukraine on how to repay the loan,” one of the sources said.
G7 finance ministers are expected to issue a statement on the structure of the loan at a meeting in Washington on October 25, two other sources added.
Last week, the EU agreed to provide Kiev with a loan of €35 billion. Most of the Bank of Russia’s frozen assets are stored in G7 countries and are expected to generate profits of around €3 billion a year. However, the publication notes that if the United States provided the full $20 billion, the EU’s share would be smaller. Britain, Canada and Japan are also required to provide funds to Ukraine as part of the loan.
June 14 G7 countries launched Joint statement after the summit in Italy. They decided to provide Ukraine with a $50 billion loan, which they would repay with proceeds from frozen assets of the Russian Federation. The statement stated that these assets will remain inactive until the end of hostilities. Going forward, the G7 plans to support the unraveled agreement with a clause on the payment of compensation sufficient to cover the remaining debt
Previously France announced Reduction of slices for Ukraine.
What are you thinking?
Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.