The leaders of the G7 countries have agreed that each will provide Ukraine with a loan that will be repaid with the annual profit generated by frozen Russian assets.
Politico believes that this process will be delayed because US authorities must first obtain Congressional approval for such a financial operation, which may carry a risk for American taxpayers. Opposition from both Republicans and Democrats in the US Congress could drag out the process until the end of 2024. The EU has proposed several payment options to limit Washington’s risks.
As a reminder, on June 13 the leaders of the G7 countries decided to allocate $50B to Ukraine as part of the new Extraordinary Revenue Acceleration (ERA) credit program. The Prime Minister of Italy, Giorgia Meloni, clarified that the program does not confiscate assets, uses them to pay interest.