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G7 and EU may use frozen Russian assets as collateral to help Ukraine – Bloomberg

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The G7 countries and the European Union are discussing a plan to use over US$250 billion of frozen Russian central bank assets as collateral to help finance Ukraine’s recovery.

Source: Bloomberg

Details: Under a proposal currently being discussed, Ukraine’s allies might issue debt to help finance Ukraine’s reconstruction, using frozen Russian assets as collateral to ensure repayment of the debt.

Proponents of the plan believe that any settlement of the conflict under international law would require Russia to pay for the damage it has caused to Ukraine.

Bloomberg’s sources noted that if Russia refuses to do so, the nation’s frozen assets could be subject to a levy.

At present, the technical specifics of the plan are being worked out – in other words, a political decision regarding the proposal has not yet been made.

At the same time, one of Bloomberg’s sources noted that some countries want to move forward on this issue “faster than others”.

Earlier, the G7 countries vowed to make Russia pay for Ukraine’s recovery and to keep its assets frozen until it does so.

Learn more: Frozen Russian assets can work for Ukraine right now. How can it be done?

Background: The European Union is unlikely to confiscate in their entirety the frozen assets belonging to the Russian central bank in Europe, despite the G7’s plans to discuss the legality of such a move at a meeting in February.

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