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Ukraine may receive EUR 30-40 billion from Russia's frozen assets

Washington proposed issuing multibillion long-term debt to finance Ukraine

Apr 12, 2024 12:05 93

Ukraine may receive EUR 30-40 billion from Russia's frozen assets - 1

Washington proposed issuing multibillion long-term debt to finance Ukraine Ukraine, using future income from investing Russian assets frozen in the West, reported the newspaper Financial Times.

„We are at a point where we need to explore all possible ways to maximize the benefits of frozen reserves for Ukraine,” the publication quoted Dalip Singh, US deputy national security adviser who oversees international economic questions. “We cannot wait forever”, he added.

The US initiative, which could be decided at the G7 summit in June in Italy, would include a proposal to issue “bonds or credit obligations,”, Singh said. This proposal will be discussed next week by G7 finance ministers on the sidelines of the spring meeting of the governing bodies of the IMF and the World Bank.

According to European officials, the bonds could bring EUR 30-40 billion over the next decade, based on the estimated profit of Russian assets of EUR 191 billion on the international platform in Belgium Euroclear, and 50-60 billion EUR for 15-20 years. According to Euroclear's forecast, the profit from the reinvestment of these Russian assets this year could be comparable to last year. The company received EUR 4.4 billion in 2023, which is more than five times the same income received by the site a year earlier.

The EU, Canada, the USA and Japan have frozen Russia's assets in the amount of about 300 billion USD, of which about 5-6 billion USD are in the USA, and most of them are in the European Union. mainly in Euroclear.

The European Commission earlier approved a proposal to use the proceeds of blocked Russian funds to provide aid to Kiev. As the High Representative of the EU for Foreign Affairs and Security Policy Josep Borrell said, this initiative provides for the transfer of 90% of the revenue for the purchase of shells for Ukraine and the transfer of 10% to the EU budget for subsequent support of the Ukrainian army. industrial complex. The first deductions can be made already in July. The head of the Central Bank of the Russian Federation, Elvira Nabiulina, said that the Bank of Russia, if the West uses frozen Russian assets, will take appropriate measures to protect its interests.