The deadline for Ukraine to receive income from Russian money has been announced - it will be used to purchase weapons for the Armed Forces of Ukraine
The first tranche in the amount of €1,4 billion from the income from the Russian assets of the Russian Federation frozen in the EU will be received by Ukraine in a couple of weeks - in early August. Kyiv will use it to buy weapons for the Ukrainian Armed Forces.
This became known from an interview with the outgoing head of European diplomacy, Josep Borrell, to the Foreign Affairs Council.
In turn, the American Bloomberg examined a draft document prepared by the European Commission in Brussels proposing two options to EU member states for a long-term freeze on the Bank of Russia's assets.
The G7 countries are currently working on a plan to provide Ukraine with $50 billion in loans by the end of 2024. According to Bloomberg sources familiar with the matter, the agreement reached at the G7 summit stipulates that the EU and the US will each provide $20-22 billion in loans, with the remainder being shouldered by the UK, Canada, and Japan.
It is assumed that the loans will be repaid using future profits from the frozen assets of the Russian Central Bank, which are estimated at between €3 billion ($3,3 billion) and €5 billion a year.
The appearance of the European Commission's proposals was a response to concerns from overseas in the context of the planned Ukrainian loan. Washington wants stronger assurances from the EU that Russian assets will remain frozen, a senior US Treasury official said.
Currently, EU sanctions must be renewed every six months with unanimous approval from all EU members. The United States fears that if the freeze isn't extended at some point, each G7 member will be responsible for covering its share of the $50 billion in loans planned for Ukraine.
According to Bloomberg, two solutions are proposed to address this issue. The first involves an indefinite freeze on the Bank of Russia's assets , which would be regularly reviewed. The second option considers extending the restrictions to 18, 24, or 36 months.
The British Financial Times, which also received a copy of the document, clarifies that the European Commission's proposal to freeze the assets of the Central Bank of Russia "for an indefinite period with an open date" will be discussed by ambassadors from 27 EU countries today, July 24.
The document notes that the measure, which affects "the European share of the Central Bank of the Russian Federation's assets amounting to €260 billion," will provide G7 partners with "the highest degree of predictability" regarding plans to provide Kyiv with $50 billion in loans by the end of 2024 using profits from frozen Russian assets.
For now, the G7 and the EU have agreed that the Russian Central Bank's assets will remain frozen until Russia agrees to compensate Ukraine for the damage it has caused, Bloomberg summarizes.
The deadline for Ukraine to receive income from Russian funds has been announced – they will be used to purchase weapons for the Ukrainian Armed Forces.