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Ukraine will use interest from Russian assets to strengthen its defense capabilities. The EC proposes freezing the Russian central bank’s assets for five years in exchange for a $50B loan.

The West continues discussing the confiscation of Russian assets - the US offers to develop a mechanism together with France.

The West is changing its position toward confiscation of frozen Russian assets.

“The Ministry of Defense of Ukraine plans to use these funds to purchase the necessary resources and means of protection that will help strengthen national security”, said Deputy Defense Minister of Ukraine Dmytro Klimenkov.

Negotiations are also underway regarding the allocation of a portion of the funds to purchase weapons from Ukrainian manufacturers. Ukraine’s work with its partners to receive the next tranche in 2025 continues.

Meanwhile, the European Commission presented to EU ambassadors three new options for extending the renewal period of sanctions covering the Central Bank of Russia’s assets, which are crucial for the provision of a $50B loan from the G7 to Ukraine. One of the options is a five-year asset freeze with a review every 12 months that would require a qualified majority of EU countries to overturn.

Another option proposes extending the freeze every 36 months by unanimous vote. The third option is to extend the term of all Russian sanctions to 36 months.

 

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