G7 will agree on allocation of USD 50 billion to Ukraine at expense of russian assets by October – U.S. Depart

By October, the countries of the Group of Seven (G7) will agree on the terms of providing Ukraine with a USD 50 billion loan at the expense of russian assets frozen in the West.

This was stated by U.S. Secretary of the Treasury Janet Yellen in a conversation with Reuters.

"We have had constructive negotiations here. We are working closely to move this initiative forward. I think everything looks good from the point of view that we will be able to do it, probably by October," the minister said on the sidelines of the meeting of the heads of financial departments and central banks of the Group of Twenty (G20) countries in Rio de Janeiro.

Yellen added that Washington is seeking assurances from Europe that russian assets will remain frozen for a long time.

The United States, European Union, Canada, and Japan froze the assets of the russian federation in the amount of about USD 300 billion after Moscow launched a large-scale war in Ukraine. Of these, only about USD 5-6 billion are in the United States, and most of them are in Europe. In May, the European Commission approved a proposal to use revenues from blocked russian funds to provide assistance to the Ukrainian side. In June, at a summit in Italy, the leaders of the "seven" reached an agreement on allocating USD 50 billion to Kyiv in the form of profits from frozen russian assets until the end of 2024.

On July 23, U.S. President Joe Biden transferred his powers to the heads of the Treasury Department and the State Department, Janet Yellen, and Antony Blinken, as part of the law "on restoring economic prosperity and opportunities for Ukraine," which provides for the confiscation of russian assets for their transfer to Kyiv.

A day before, the head of EU diplomacy, Josep Borrell, announced at a press conference following the meeting of foreign ministers of the EU countries that at the beginning of August, Kyiv will receive EUR 1.4 billion from Europe as part of the first tranche of revenues from frozen russian assets. He emphasized that the EU countries intend to finance priority weapons for Ukraine, including air defense systems and ammunition for artillery. In addition, the European Union will allocate funds to support the Ukrainian defense industry.

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