{"id":72473,"date":"2024-06-13T22:45:13","date_gmt":"2024-06-13T22:45:13","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/06\/13\/g7-leaders-agree-on-50-billion-loan-to-ukraine-from-frozen-russian-assets\/"},"modified":"2024-06-13T22:45:13","modified_gmt":"2024-06-13T22:45:13","slug":"g7-leaders-agree-on-50-billion-loan-to-ukraine-from-frozen-russian-assets","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/06\/13\/g7-leaders-agree-on-50-billion-loan-to-ukraine-from-frozen-russian-assets\/","title":{"rendered":"G7 Leaders Agree on $50 Billion Loan to Ukraine From Frozen Russian Assets"},"content":{"rendered":"<div style=\"text-align:center\"><img loading=\"lazy\" decoding=\"async\" width=\"1050\" height=\"550\" src=\"https:\/\/i0.wp.com\/static01.nyt.com\/images\/2024\/06\/13\/multimedia\/13g7-blog-loan-deal-wgcp\/13g7-blog-loan-deal-wgcp-facebookJumbo.jpg?resize=1050,550&amp;ssl=1\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"G7 Leaders Agree on  Billion Loan to Ukraine From Frozen Russian Assets\" title=\"G7 Leaders Agree on  Billion Loan to Ukraine From Frozen Russian Assets\" \/><\/div><p> <br \/>\n<\/p>\n<div>\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">The United States and the West\u2019s other large economies have agreed on a plan to issue <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/06\/13\/world\/europe\/biden-zelensky-ukraine-us-security-deal.html\" title=\"\">a roughly $50 billion loan<\/a> to Ukraine that would be repaid by interest and profits from nearly $300 billion in frozen Russian assets held in the West.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The promise of much-needed financial support for weapons and to begin to rebuild damaged infrastructure comes as Ukraine has been forced to sell <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/06\/12\/world\/europe\/ukraine-privatization-war.html\" title=\"\">some state assets<\/a> and as the momentum in the war on its territory has shifted in favor of its foe, Russia, whose forces launched a full-scale invasion in 2022.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">President Biden agreed to have the United States underwrite the entire loan, but American officials said they expected allies, including members of the European Union, to provide some of the upfront funds.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The loan would eventually be repaid through interest and profits earned on the frozen Russian assets, which would serve as collateral.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div>\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">In a news conference Thursday with President Volodymyr Zelensky of Ukraine in Italy, on the sidelines of the <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/06\/13\/world\/europe\/g7-summit.html\" title=\"\">Group of 7 summit<\/a>, Mr. Biden said the agreement was another reminder to President Vladimir V. Putin of Russia that \u201cwe\u2019re not backing down. In fact, we\u2019re standing together against this illegal aggression.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">In New York on Thursday, Treasury Secretary Janet L. Yellen, an architect of the plan, said that the profits from Russia\u2019s assets would provide Ukraine with additional aid in the future, making it harder for Mr. Putin to wait out the West.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cThis is the first tranche, and if necessary there\u2019s more behind it,\u201d Ms. Yellen said. \u201cIn a sense, we\u2019re getting Russia to help pay for the damage it\u2019s caused.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The president of the European Commission, Ursula von der Leyen, said on Thursday that all the members of the Group of 7, the world\u2019s wealthiest large democracies, would participate, including the European Union itself, but the extent of each member\u2019s participation was being worked out by finance ministers and other technical experts.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The European Union might contribute up to half the money, a senior European official said, speaking anonymously under normal diplomatic ground rules, while American officials said that Washington would make up any remaining difference. <\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<div>\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">The issue is complicated, because if the Russian assets are unfrozen or if interest rates drop significantly, then the interest and profits may not cover the loan, requiring a burden-sharing arrangement with other countries to guarantee repayment.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The idea of a loan using the assets is an American one, given the need to get money to Ukraine quickly and before the November U.S. election that could return Donald J. Trump, who has been more critical of aid to Ukraine, to the presidency.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The European Union had agreed to use <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/06\/12\/us\/politics\/g7-biden-frozen-russian-assets-ukraine.html?searchResultPosition=2\" title=\"\">only the yearly profits and interest from the assets<\/a> \u2014 perhaps $3 billion \u2014 to aid Ukraine, but embraced the essence of the American plan once the issue of who would guarantee the loan seemed to have been resolved.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">The money is expected to be disbursed through various channels, instead of being directly handed to Ukraine, so that it will be used for Ukraine\u2019s pressing military, budget and reconstruction needs, the European official said.<\/p>\n<p class=\"css-798hid etfikam0\">Alan Rappeport<!-- --> and <!-- -->Tim Balk<!-- --> contributed reporting.<\/p>\n<\/div>\n<aside class=\"css-ew4tgv\" aria-label=\"companion column\"\/><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.nytimes.com\/2024\/06\/13\/world\/europe\/g7-ukraine-loan-russian-assets.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The United States and the West\u2019s other large economies have agreed on a plan to issue a roughly $50 billion loan to Ukraine that would be repaid by interest and profits from nearly $300 billion in frozen Russian assets held in the West. The promise of much-needed financial support for weapons and to begin to [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":72474,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/static01.nyt.com\/images\/2024\/06\/13\/multimedia\/13g7-blog-loan-deal-wgcp\/13g7-blog-loan-deal-wgcp-facebookJumbo.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[3748,4252,1289,51011,6118,2070,1461,1130],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/72473"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=72473"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/72473\/revisions"}],"predecessor-version":[{"id":72475,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/72473\/revisions\/72475"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/72474"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=72473"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=72473"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=72473"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}