G7 is about to have a new move, EU officially "spends" 37.8 billion USD for Ukraine, Moscow speaks up

On October 22, Japan's Nikkei Asia quoted several sources in the Group of Seven (G7) as saying that the group will issue a statement on Russia's frozen assets as early as this month.

Russia accuses EU of handing over Moscow assets to Kiev. (Source: Getty Images)

The G7 side said that Russia's assets will be frozen until the country compensates for the damage caused to Ukraine.

The draft statement of the G7 leaders also stated that the bloc will guarantee a $50 billion loan for Kiev.

Recent media reports say the US is ready to provide Ukraine with a loan of up to $20 billion as part of a joint G7 loan to the Eastern European country.

Similarly, the UK will provide a loan of nearly $3 billion.

* On the same day, the European Parliament (EP) officially approved a loan of up to 35 billion Euros (about 37.8 billion USD) for Ukraine. This amount will be funded through revenue from Russia's frozen assets in the European Union (EU).

The final amount from the EU will depend on contributions from other G7 partners, the EP said.

The funds, expected to be disbursed by the end of 2025, are part of Ukraine's new Lending Cooperation Mechanism, which allows future proceeds from the Russian Central Bank's frozen assets in the 27-member bloc to be used to assist Kiev in repaying its debts.

* On Russia's side, also on October 22, its permanent representative to the EU Kirill Logvinov accused the EU of committing economic crimes on a global scale because of its decision to use Moscow's frozen assets to finance Kiev.

After Russia began its military campaign in Ukraine (February 2022), the 27-member bloc and the G7 countries froze nearly half of the country's foreign exchange reserves, about 300 billion euros.

Of this, more than €200 billion is held within the EU, mainly in Belgium's Euroclear, one of the world's largest payment and clearing systems. This amount is expected to generate profits of €2.5-3.5 billion per year.

Source: https://baoquocte.vn/tai-san-nga-bi-phong-toa-g7-sap-co-dong-thai-moi-eu-chinh-thuc-tieu-378-ty-usd-cho-ukraine-moscow-len-tieng-291056.html