G7 leaders finalize deal to use Russia assets for $50B Ukraine loan
G7 leaders finalize deal to use Russia assets for $50B Ukraine loan
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I didn't understand from the article, who's the lander? It sounds like a huge dept trap, am I wrong?
The loan would be repaid entirely using the windfall profits generated by more than $250 billion of Russian assets that were immobilized across Western countries after Moscow’s invasion of Ukraine in February 2022.
Washington announced on Wednesday that it would contribute $20 billion to the loan during December, in a bid to shield its contribution from the fallout of the U.S. election. Donald Trump has previously questioned Washington's support to Ukraine should he return to the While House.
The agreement comes after the U.S. previously said that it wouldn’t be able to give a substantial amount unless the EU changed its rules governing sanctions.
The EU, which is holding most of the frozen funds, pledged to give up to €35 billion to Ukraine. In the end, the bloc is expected to also allocate $20 billion. The remaining $10 billion will be split among the U.K., Canada and Japan.
So the lenders are the countries. The debt is paid back using the profits from frozen Russian assets. So if things can go back to normal with Russia at some point, the assets can still be unfrozen and "given back".
At the end of the day this helps Ukraine secure funding, but also allows the lending countries to profit from the interest incurred. I have no idea how the legal rules are for handling the profits from frozen assets. But this is certainly a way to claim "moral legality" in taking some of the profits.
Now whether this is mostly about helping Ukraine or about skimming the profits from frozen assets depends on the interest rate.
The frozen assets will be given back AFTER the war reparations costs have been assessed and paid in full by Russia... So they won’t see them before a long time...
The United States and Europe stole Russian assets and is using the profit from those to make a loan to Ukraine. _What Russia and every other country on earth now knows is that you cannot trust the United States if you disagree with them and should not be holding your reserves in the US dollar, but instead should be holding them in gold and other assets that are not able to be seized by the United States.
How shameful, what had Russia done to deserve such treatment?
Gosh, I wonder what Russia might have done to piss off half the world and seize their funds.
First time war?
It has always been like that and it’s a reason a war should be avoided when you don’t have the power to maintain your military and economic force...
And it’s exactly why main leaders of the worlds warned russia months before the invasion until the first day of the invasion: "Are you sure? You should not move so many troops near ukraine border for your ’exercice’ Because you have more too loose as a super-power country"
He didn’t listen so now pay back!
What Russia and every other country on earth now knows is that you cannot trust the United States if you disagree with them
If any country pays attention to US foreign policy, they've known this for decades.
I wonder if you'd feel the same way if Israeli assets were seized? I doubt it.
Why not both?
You ask them. They refuse to talk about Israel.
Other countries should make it impossible for the US to seize anything without force being required. L
That has nothing to do with my comment.
Would you be okay if Israel's assets were seized and the money given to Palestinian resistance groups? Because I'm guessing you would. That would be the ethical thing to do.
Russia, obviously, is special to you. You're against the ethical thing in that case, despite Putin also committing genocide.
I am against the United States being able to seize the assets of other countries, whether it be Russia or Israel or Egypt or anywhere else. The US does not have the right to be able to just seize somebody's assets. That's called theft. And theft is wrong.
That still has nothing to do with my comment. It's very dishonest of you keep evading what I'm talking about.
I answered your question. What more could you possibly want?
You did not. You talked about the U.S., not G7 as a whole. No one asked you about the U.S. The vast majority of seized assets have not been seized by the U.S.
Ah, okay, I see. Well, regardless whether it's the US or Europe or whatever, I don't feel as though any country should have the right to seize another country's assets.
Then what should be done with things like Russian oligarchs' yachts in foreign ports? They're taking up space that could be better utilized and the oligarchs aren't allowed to get them due to sanctions. Is it right to expect, for example, France to maintain some Russian billionaire's yacht docked in the harbor in Nice to maintain it indefinitely? That, of course, means that they have to make sure that it will not become a risk to the port in any way. That also means that French taxpayers are going to have to pay to maintain that yacht.
I don't see the logic there.