G7 Leaders To Use Frozen Russian Assets To Back Next Tranche Of Ukraine Aid

Group of Seven (G7) leaders on Thursday reached an agreement in Italy to provide Ukraine with a loan backed by frozen Russian assets. And while the total amount is unclear at this time, the Biden administration has committed $50 billion alone.

Biden salutes Zelensky at the G7 summit.

Please make it STOP! pic.twitter.com/1Ym6ruyjA7

— I Meme Therefore I Am 🇺🇸 (@ImMeme0) June 13, 2024

According to senior Biden administration officials, the loan will become active later this year, and will effectively make Russia pay for it vs. US taxpayers and G7 countries.

„Russia pays,” said one official. „The income comes from the interest stream on the immobilized assets, and that’s the only fair way to be repaid. The principle is untouched for now. But we have full optionality to seize the principal later if the political will is there.”

In a post on X, Ukrainian President Volodymyr Zelensky said he’s 'grateful’ to their 'partners’ for their support.

Bro hugs were had.

We will do whatever it takes to end Putin’s illegal war.

That’s why Ukraine welcomes Britain’s commitment to continuing to support Ukraine’s military, economy and people.

In an increasingly uncertain world, Britain and Ukraine are united in wanting a secure future for our… pic.twitter.com/URGC3z52bN

— Volodymyr Zelenskyy / Володимир Зеленський (@ZelenskyyUa) June 13, 2024

As the Epoch Times notes further,  In the run-up to the crucial summit, the G7 finance ministers held discussions about the legality of using some $300 billion worth of frozen assets kept in European accounts as collateral for providing a loan to Ukraine for reconstruction. France was believed to be the main holdout on the plan.

President Biden mentioned before leaving France last week that he had reached an agreement with Mr. Macron on a plan to use the frozen Russian assets.

When asked how the United States was able to overcome concerns about the use of sovereign assets, the senior administration official said they asked, “What’s the alternative” if Ukraine was insufficiently financed?

“What would be the chilling effect it would cause across Europe and the rest of the world,” he asked. “What would be the signal to autocrats that they can redraw borders by force? Those are the costs, I think, we all agreed are unacceptable, and that’s why we acted.”

The senior administration official also said that the funds would be used in multiple ways in Ukraine, including humanitarian support and reconstruction support. However, he also said that there were “certain jurisdictions” that preferred to have their money earmarked for military support.

The agreement was reached a day after the United States announced expanded sanctions on more than 300 entities and individuals designed to “ratchet up the risks that foreign financial institutions take by dealing with Russia’s war economy,” according to national security adviser Jake Sullivan.

Following his meetings with G7 leaders on June 13, President Biden will sign a 10-year bilateral security agreement with Mr. Zelenskyy, signifying a continuing U.S. commitment to support the war-torn country against Russian aggression.

This is the 50th summit meeting of the leaders of the United States, Japan, Germany, the UK, France, Italy, and Canada—the seven most advanced economies in the world—and, along with the war in Ukraine and Russian assets, discussions are also expected to cover the war in Gaza, economic security, AI, migration, climate change, and food security.