US AND G7 AGREE $50bn OF FUNDS TO SUPPORT UKRAINE Financed from Frozen Russian Assets
The G7 has agreed to a dangerous deal with Ukraine and today has announced that Ukraine will be given a loan of $50bn (£39bn) to help it in the ongoing war with Russia over its eastern provinces and Crimea.
Dangerous because it’s financed from interest from seized Russian Assets. Assets seized by the West after Russia launched its invasion of Ukraine in 2022.
President Joe Biden said it was to remind Russia of the continued support available to Ukraine to continue the War with Russia. The Russian President Vladimir Putin responded in the strongest terms, “This theft will not go unpunished!”
In theory, the money from frozen Russian Assets – around $325bn, generates $3bn in interest every year. According to this deal, the $3bn will be used to pay off the interest of the $50bn loan.
On top of this deal, the US and Ukraine signed a ten-year bilateral security deal, allowing the US to assist Ukraine with military and training aid over ten years, but stopped short of offering US troops to defend Ukraine in light of any new aggression by Russia.
The security deal will allow the US to maintain Ukraine’s defence and deterrence capability, bolster its defence industrial base, support economic recovery, and improve Ukraine’s energy security.
The arrival of the money is scheduled for the end of the year.
The Frozen Russian Assets are still technically Russian, but this is a step to force the Russians to pay for the monies sent to support Ukraine. Its still another escalation in the West’s unofficial War with Russia.
