On the way to World War III, the Deep State and Democrats are doing all they can to poke the bear. Including pressuring Europe to join in and openly steal Russian assets.
During a summit in Italy, G7 leaders discussed the specifics of this financial arrangement, which aims to deliver the funds to Kyiv by the end of the year, as indicated by officials from the U.S. and France.
The #G7 Nations on Thursday reached an agreement to loan #Ukraine $50 Billion to help their war effort against #Russia backing it with the invading nation's frozen assets.https://t.co/5Q0vFoS3RR pic.twitter.com/s8OP6fDwUI
— NTD News (@NTDNews) June 13, 2024
President Joe Biden highlighted this development as a “historic agreement” at a press conference. Concurrently, Ukrainian President Volodymyr Zelenskyy emphasized the crucial nature of this support, noting that utilizing Russian assets for this purpose marks a significant advancement in sustaining Ukraine’s efforts in the conflict.
Funding Sources and Utilization The majority of this $50 billion would come as a loan primarily guaranteed by the U.S. government, utilizing the profits from approximately $260 billion in Russian assets that are currently immobilized and held predominantly within European Union countries. An official from France mentioned the possibility of enhancing the loan with additional European funds or contributions from other nations.
A U.S. official, speaking anonymously, mentioned that the forthcoming official statement from the G7 leaders might also consider the full confiscation of the Russian assets.
#Italy: G7 member countries have agreed to lend #Ukraine 50 billion dollars using money generated from frozen #Russian assets.
Ukraine is to use the loan package to strengthen its military defence against Russia, pay for the reconstruction of infrastructure, and funding for… pic.twitter.com/6ntEhEb0f0
— All India Radio News (@airnewsalerts) June 13, 2024
Legal and Operational Challenges The idea of directly transferring the frozen Russian assets to Ukraine has been complicated by legal considerations. Since the invasion of Ukraine by Russia in 2022, these assets have been frozen by the U.S. and its allies, rendering them inaccessible to Moscow but still legally Russian property.
Turning these assets into forfeited property that could benefit Ukraine involves complex judicial processes. Instead, the EU has opted to allocate the profits from these assets, which presents fewer legal hurdles.
In the U.S., a newly passed law, the REPO Act — Rebuilding Economic Prosperity and Opportunity for Ukrainians Act — allows for the seizure of $5 billion in Russian state assets to benefit Ukraine, though the specifics of this arrangement are still being finalized.
G7 Leaders set to announce $50 billion aid loan to Ukraine with the U.S. committing to train and equip Ukrainian soldiers to assist in the war with Russia. @gabegutierrez has the latest. pic.twitter.com/tixTnqTrZG
— MSNBC (@MSNBC) June 13, 2024
Implementation and Impact The disbursement of the loan will be managed by technical experts and is intended to cover military, economic, humanitarian, and reconstruction needs in Ukraine. Jake Sullivan, Biden’s national security adviser, stated that the primary objective is to equip Ukraine with necessary resources to sustain itself against ongoing aggression.
The urgency of the financial aid is underscored by the anticipation of distributing the entire $50 billion by the end of 2024. This timeline is crucial given the extensive needs for post-war recovery and reconstruction, which the World Bank estimates at $486 billion over the next decade.
Concerns and Considerations A default on the loan could raise significant concerns about burden-sharing, especially if Russia regains control of the assets or if the generated interest is insufficient to cover the loan repayment. This potential scenario has raised apprehensions among European finance ministers about the financial responsibilities their countries might have to bear.
Major Points
- G7 leaders have agreed to provide Ukraine with a $50 billion loan, using interest from Russia’s frozen central bank assets as collateral.
- The loan is primarily backed by the U.S. government and leverages profits from approximately $260 billion in Russian assets held mostly in EU countries.
- Legal complexities prevent the direct use of frozen Russian assets, prompting the use of their generated interest instead.
- The funds are designated for Ukraine’s military, economic, humanitarian needs, and reconstruction, with plans to disburse the money by the end of 2024.
- Concerns arise over who would bear financial responsibilities if Ukraine defaults or if insufficient interest is generated to repay the loan.
Fallon Jacobson – Reprinted with permission of Whatfinger News
