France has announced plans to use a portion of the frozen Russian assets, totaling 1.4 billion euros, to purchase military equipment for Ukraine. The move follows the European Union’s decision to utilize the interest generated from seized Russian assets to support Ukraine’s defense efforts.
The European Union has announced the transfer of €1.5 billion in proceeds from frozen Russian assets to Ukraine, aimed at supporting the country’s defense and reconstruction efforts. The decision highlights the EU’s commitment to Ukraine and symbolizes the use of Russian funds to bolster security in Europe.
At the G7 summit in Italy, leaders approved a $50 billion loan to Ukraine, backed by interest from frozen Russian assets. The loan, provided by a loan syndicate led by the US, aims to support Ukraine’s ongoing conflict with Russia. The use of frozen assets ensures that the principal amounts remain untouched while allowing Ukraine to access much-needed funds. The liability in case of default would likely fall on the G7 nations involved in the syndicate. The EU has opted to use the profits generated from these assets instead of directly transferring them to Ukraine due to legal complexities. The US has taken a slightly different approach with the REPO Act, allowing the seizure of $5 billion in Russian state assets within the US for Ukraine’s benefit. This loan represents a significant commitment from the G7 countries, highlighting their resolve to support Ukraine against Russian aggression.
