USA, EU confirm readiness not to unfreeze Russian assets until Kyiv receives reparations
The United States and EU countries have agreed to block sanctioned Russian assets until the Russian Federation pays reparations for the invasion of Ukraine, the Associated Press said, citing its own high-ranking U.S. source.
"That clears the way for leaders to announce the $50 billion loan package for Ukraine at the G7 summit, where President Joe Biden is set to sign a security agreement with Ukrainian President Volodymyr Zelenskyy. The highly anticipated agreement will leverage interest and income from more than $260 billion in frozen Russian assets, largely held in Europe, to secure a $50 billion loan from the U.S. and additional loans from other partners," according to the Associated Press.
According to the source, the first payments will be made this year, but Ukraine will need time to use all the money. Ukraine will be able to spend money on several areas, including military, economic and humanitarian needs.
The agreement between Zelenskyy and Biden will be included in a communiqué from G7 leaders on Friday and "will also leave the door open to confiscating the Russian assets entirely, for which the allies have yet to secure the political will, largely citing legal and financial stability concerns," the Associated Press said.