The Group of Seven wealthy democracies are set to finalize a framework deal for a $50 billion loan to Ukraine backed by Russian assets by October. This loan is expected to be ready for market entry by the end of the year, according to European Economic Commissioner Paolo Gentiloni.
Gentiloni expressed confidence in the progress made on the technical and legal aspects of the loan during a G20 meeting in Rio de Janeiro. The loan would be funded by approximately $300 billion of Russian central bank assets frozen in the West since Moscow’s invasion of Ukraine in 2022.
While there is not yet unanimous support among the G7 for seizing the frozen assets, there is agreement on the possibility of utilizing the profits generated by these assets. Discussions have been described as positive, with optimism that remaining questions can be resolved.
Most of the frozen assets are in Europe, with concerns about the need for frequent renewal of sanctions affecting the loan stability. The EU is considering options to ensure the continuity of the revenue stream, including an open-ended freeze agreement and potential extensions of the current freeze period.