BancaMarch : G7 members have reached a (tentative) agreement that would allow the use of proceeds from frozen Russian assets to provide a $50 billion loan to Ukraine. Russia’s frozen assets worldwide amount to $300 billion, however, this amount cannot be used, but the interest – some $3 billion – generated annually can be used. Thus, future profits are established as collateral for the $50 billion loan. The deal would involve a syndicated loan – granted by multiple lenders – although how the risk will be distributed has yet to be specified. With this, the G7 will launch ‘Extraordinary Revenue Acceleration Loans’, with the aim of providing military support to Ukraine and financing the country’s reconstruction. The next step is to formalise the approval of EU member states, sign the contracts between the countries involved in the loan and agree on a disbursement schedule.
G7 to allow use of proceeds from immobilised Russian assets to provide loan to Ukraine
