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G7 to Use Russian Assets to Reimburse Ukraine’s Debts

G7 to Use Russian Assets to Reimburse Ukraine’s Debts

The Group of 7 countries announced they would use $ 50 billion of frozen Russian assets abroad as a debt loan to Ukraine. Russia plans revenge. The G7 countries announced they would use $50 billion of frozen Russian assets abroad as a debt loan to Ukraine to strengthen its forces fighting Moscow’s forces. Currently, Ukraine is in a condition that requires additional weapons systems for its troops, which makes President Volodymyr Zelensky worried that his country can survive the onslaught of Russian troops after 28 months of war. The announcement came when the leaders of the G7 group, the United States, United Kingdom, Germany, Italy, Canada, Japan, France and the European Union, met at the annual summit held in Puglia (Apulia), Italy. Western countries have frozen Central Bank assets in their regions following Russia’s invasion of Ukraine in 2022. 

These assets amount to around $ 300 billion and have generated an annual interest income of $ 3 billion. The U.S. has long urged that funds managed by the European Union be used to support Ukraine. Zelenskyy, who also attended the summit, hailed the move as an important step forward in helping Ukraine win the war.

Russian Foreign Ministry Spokesperson Maria Zakharova promised there would be “very painful retaliatory measures.” In return, Moscow may freeze the assets of Western companies operating in pre-war Russia. Russia claims these assets are worth almost the same as Russian assets abroad, namely $ 300 billion, which are frozen in Western countries. 

 A February World Bank report estimated that reconstruction costs in Ukraine would reach 486 billion USD over the next ten years. The Group of 7 has also targeted China, not for selling the weapons to Russia but for having the ability to produce those weapons and the technology available to do it.

FNSS