The G7 will grant Ukraine a €30B loan secured by Russian assets.

This week, the finance ministers of the G7 countries will discuss the legality of using €270B in frozen assets belonging to the Russian Federation as collateral to provide Ukraine with a €30B loan. Washington is seeking to mobilize frozen Russian assets to provide Ukraine with a substantial loan, the interest on which will be paid from the annual profits generated by these assets.

US Treasury Secretary Janet Yellen said: “I think we’re seeing significant interest among all of our partners in the credit facility. This will provide a significant upfront amount that will help meet the needs that we expect to arise in Ukraine both militarily and in terms of reconstruction”.

The G7 countries could back the bonds with government guarantees to reassure private investors. Using the Russian central bank’s assets as collateral will be a reversible measure, contingent upon Russia paying reparations.

Also, the US State Department announced that it would use the right granted by Congress to confiscate Russian assets in the US.