Ukraine received first $1 billion from loan funded by frozen Russian assets


Overall, the West has frozen $300 billion in Russian sovereign assets.

Ukraine has received the initial $1 billion tranche of a $20 billion loan backed by profits from frozen Russian assets, Prime Minister Denys Shmyhal announced in a Telegram post.

“We anticipate that all sovereign Russian assets will eventually be confiscated and directed toward Ukraine’s reconstruction,” Shmyhal said.

The loan, part of a broader $50 billion aid package approved by G7 nations, was announced by the U.S. government on 10 December. Instead of direct transfers, the funds are channeled through a special World Bank mechanism, the U.S. Treasury Department specified.

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Since the onset of Russia's full-scale invasion in 2022, Western nations have frozen over $300 billion in Russian sovereign assets, predominantly in Europe.

While legal frameworks for full confiscation have not yet been established, G7 countries agreed to issue loans to Ukraine secured by income generated from investing these frozen assets.

In the first phase of the initiative, the G7 allocated $50 billion in loans, including $20 billion from the U.S. and $18 billion from the E.U.

The European Union has also committed to transferring profits from frozen Russian assets to Ukraine. In October, the European Council approved a loan package worth up to €35 billion ($36.7 billion), similarly backed by revenues from these assets.

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