Biden and Macron Agree to Use Profits from Frozen Russian Assets to Aid Ukraine

by Roman Cheplyk
Monday, June 10, 2024
Biden and Macron Agree to Use Profits from Frozen Russian Assets to Aid Ukraine

On Sunday, June 9, US President Joe Biden announced that he had reached an agreement with French President Emmanuel Macron to use profits from frozen Russian assets to support Ukraine

Key Points:

  • Agreement Details: Biden confirmed the agreement with Macron when questioned by journalists.
  • Context: The G7 and the EU are considering using profits from frozen Russian assets in the West to provide Ukraine with substantial financial aid and ensure ongoing support until 2025.
  • Frozen Assets: Approximately €260 billion ($280.9 billion) of Russian sovereign assets are frozen globally, with most located in the EU. These funds generate annual profits between €2.5 and €3.5 billion, which are seen as potential resources for Ukraine.
  • Proposed Use of Profits: The US proposal involves using these profits as a permanent revenue stream to service a $50 billion loan for Ukraine. The profits, according to the European Union, do not belong to Russia under existing contracts and are therefore considered "windfall" gains.
  • Russian Response: Russia has claimed that any use of profits from these frozen assets would be equivalent to theft.
  • Concerns and Progress: The proposal has raised concerns among some countries. However, a US Treasury official indicated that the US and its G7 partners are making progress in reaching an agreement on this issue.

This development underscores the ongoing international efforts to support Ukraine financially amid the conflict with Russia. The use of profits from frozen Russian assets represents a significant step in providing sustained financial aid to Kyiv.

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