The Group of Seven (G7) is in the final stages of approving a $50 billion loan for Ukraine, secured against Russian sovereign assets frozen by Western nations since the escalation of the Ukraine conflict in February 2022. US Secretary of State Antony Blinken, speaking after a G7 meeting in Italy, reaffirmed the group’s commitment to ensuring that Ukraine is adequately resourced to sustain its war efforts or negotiate from a position of strength.

Blinken emphasized that the funds would bolster Ukraine’s capabilities well into 2025. “In our support for Ukraine, we are finalizing getting out the door the $50 billion that has been secured on the basis of the Russian sovereign assets that are frozen,” he stated. This financial backing represents a concerted effort by the G7 to stabilize Ukraine’s position amidst ongoing hostilities and provide a foundation for potential diplomatic negotiations with Moscow.

The frozen Russian assets, estimated at $300 billion, are largely held in Western financial institutions. A significant portion of these, approximately €197 billion ($206 billion), is managed by the Brussels-based clearinghouse Euroclear, which reported generating €5.15 billion ($5.4 billion) in interest from the immobilized funds during the first three quarters of this fiscal year.

The initiative to loan Ukraine funds backed by these frozen assets has raised significant legal and ethical questions. Moscow has repeatedly condemned the asset freeze as “theft” and warned that reallocating these funds would set a dangerous precedent. Russian Finance Minister Anton Siluanov promised retaliatory measures, stating that Russia had........

© Blitz