G7 will decide the fate of Russian assets: how much can Ukraine get and what are the problems

The G7 leaders' summit in Italy will discuss the securitization of frozen Russian assets, which could provide Ukraine with concessional financing worth about $50 billion from 2025. If the plan is approved, it will cover Ukraine's need for external financing for 2025 and provide a guarantee of funding regardless of political changes.

This was announced by the head of the Committee on Finance, Taxation and Customs Policy, Danylo Hetmantsev (Servant of the People). On Thursday, June 13, a three-day summit of G7 leaders began in the Italian region of Puglia, where one of the main topics to be discussed at the initiative of the United States will be the securitization of Russian assets . This event is extremely important for Ukraine, as it is about the possibility of obtaining concessional financing worth about $50 billion starting in 2025.

The essence of securitization of Russian assets

The plan envisages the issuance of securities (bonds) secured by the income from the frozen assets of the Bank of Russia in the long term. Mr. Getmantsev notes that there are still many unresolved issues as to how the future deal will be structured. Some of them include:

• Which countries will provide funding and in what proportion?
• How will guarantees be provided that the assets, most of which are located in the EU, will remain frozen for a long time and generate cash flow?
• Will the funding be provided in the form of a concessional loan or a non-repayable grant?
• What will be the administrative structure for the financing (preliminary agreements point to the creation of a fund to be administered by the World Bank)?

According to Danylo Hetmantsev, if this plan is approved, it will be an important milestone for Ukraine in the coming years . He notes that such a decision will cover the need for external financing for 2025, which the Ministry of Finance currently estimates at $32 billion. Ukraine will receive a guarantee of receiving such funding regardless of political cycles, including the US elections.

France's position and support from G7 leaders

Another positive signal was the news from Bloomberg, which cited France as saying that it had agreed to allocate $50 billion for Ukraine through the use of proceeds from frozen assets. The first deputy head of the committee, Yaroslav Zheleznyak (Holos), emphasized that this was especially important given France's skeptical position.

He expressed optimism that the main political decision to follow the US plan would be made. Mr. Zheleznyak agreed that there are still many unresolved issues . Despite the positive news, there are still some challenges that need to be further negotiated:

• When will the funds be available (according to reports, funds will be disbursed by the end of the year, but the amount remains unclear)?
• Who will administer the funding (the EU or the World Bank)?
• What are the conditions for disbursement and use of the funds (can they be used for military expenditures)?
• For how long will the funding be provided?

"All these details will be agreed upon for a long time after the G7 Summit, and there will definitely be risks. But so far, it seems that the main political decision to follow the US plan will be made tomorrow," he said.

As OBOZ.UA reported earlier, the United States is pushing its partners from the Group of Seven (G7) to provide Ukraine with $50 billion in macro-financial assistance, which will be repaid with the proceeds from Russia's frozen assets. Part of the funds may be provided in advance to provide assistance in the short term.

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