The move aims to bolster Ukraine's economy and aid in reconstruction efforts amid ongoing conflicts.
Ambassador Oksana Markarova's Statement
Oksana Markarova, Ukraine's Ambassador to the United States, highlighted the significance of these assets for Ukraine's recovery.
"These assets—which in net amount total close to $300 billion—in our opinion, all of them are likely to be confiscated and transferred to Ukraine," Markarova stated.
She emphasized the importance of partner nations' decisions to ensure a continuous flow of frozen Russian assets benefiting Ukraine.
Efforts to Secure Frozen Assets
Markarova noted that Ukraine is engaging with international partners to discuss the legal mechanisms for confiscating and transferring the frozen assets. She mentioned that the United States has secured funds to support further confiscations and that Congress has passed legislation, including the REPO Act, to facilitate this process.
However, she acknowledged that the G7 partners have agreed to work in close coordination, and comprehensive confiscation would require collective action.
U.S. Proposal on Asset Distribution
The ambassador indicated that while negotiations for new confiscations are ongoing, the U.S. is proposing the idea of distributing proceeds from frozen assets to benefit Ukraine.
$50 Billion Loan from G7 Nations
G7 Leaders' Approval
Leaders of the G7 countries have approved a decision to provide Ukraine with a long-term loan amounting to $50 billion, which will be repaid from future profits derived from the frozen Russian sovereign assets located in the European Union and other jurisdictions.
Funding Allocation
- United States: Committed to providing $20 billion as part of the G7 loan.
- Japan: Pledging $10 billion.
- Canada and the United Kingdom: Each offering $3 billion.
- European Union: Macro-financial assistance amounting to up to €35 billion.
Extraordinary Revenue Acceleration (ERA) Initiative
The loan is part of a new initiative called Extraordinary Revenue Acceleration (ERA), aimed at accelerating financial support for Ukraine's immediate needs.
Russia's Obligations and World Bank Estimates
The G7 leaders also supported the decision that the Russian Federation is obligated to pay for damages caused to Ukraine, which, according to World Bank estimates, amount to $486 billion.
