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world : G7 agrees $50bn loan for Ukraine from Russian assets

world : G7 agrees $50bn loan for Ukraine from Russian assets
world : G7 agrees $50bn loan for Ukraine from Russian assets

Friday 14 June 2024 02:30 AM

Nafeza 2 world - Some of those in Kyiv, who had been pushing for this cash, had wanted the G7 to release the whole frozen fund of $300bn, not merely the interest it is generating. The European Central Bank had ruled that out.

Unlike the US aid package, which directly translated into more missiles being sent to the front line, this money will likely not arrive until the end of the year, meaning it will have little impact on the current course of the war.

For now, Ukraine says it still urgently needs more weapons - primarily air defence systems to blunt Russia’s missile and drone attacks on its cities and power stations, as well as long awaited F-16 fighter jets, which it hopes will start arriving as early as this summer.

At the G7 summit, Mr Zelensky said the new security agreement included US shipments of those warplanes.

The loan deal is also hugely symbolic for Ukraine. Its aggressor is now being forced to pay, not only to repair the devastation it has wrought - but for Ukraine to defend itself.

One of Mr Zelensky's closest advisers has said that the West’s decision to punish Russia in this way, in one sense, marks a turning point in the war.

However, the loan is unlikely to force a Russian U-turn on its war in Ukraine.

Most of the frozen assets of the Central Bank of Russia are being held in Belgium.

Under international law, countries cannot confiscate those assets from Russia and give them to Ukraine.

Several hours before the G7 decision was announced, Russian Foreign Ministry spokeswoman Maria Zakharova warned that there would be "extremely painful" retaliatory measures.

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