G7 agrees to loan Ukraine $50 billion from the interest on frozen Russian assets
G7 agrees to loan Ukraine $50 billion from the interest on frozen Russian assets
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@jeffw are the interests on the frozen assets generating/generated 50 billions of $ ? š¤
From the article:
When Russia invaded Ukraine in 2022, Western governments froze about $300 billion in Russian assets ā including money, securities, gold and bonds ā held mainly in banks in Europe.
Leaders of the G7 economies have agreed to use the interest generated by the assets ā about $3 billion per year ā to help Ukraine.
@mosiacmango so it's around 6 billions = 3 billions/year x 2years, not 50 billions, right?
They're giving Ukraine $50B, as a loan. They're repaying the loan at a rate of $3B/yr using the seized interest payments.
Ah so ukrains not meant to pay it back but it's gonna get paid back by the interest on the Russian money held in international banks. Thanks for the explanation and this is definitely a step up of what I thought it was.
This only works assuming Russia is indefinitely sanctioned... So, either we've just signed ourselves into a second Cold War, or the taxpayer will be responsible for repayment.