While Western countries have frozen $300 billion in Russian assets, they can only access the income generated by these funds, approximately $3.2 billion, annually.
By setting up a fund with loans to be repaid using this income, countries can offer immediate support to Ukraine beyond this amount.
I wonder why they cant liquidate a percentage of any of the currently held assets? I guess most are intangible? Or some other international law preventing direct asset control
They probably can, but it's a further escalation in sanctions and would set a precedent that investments in another country aren't safe.
By holding them, it also gives an incentive to end the war. Stop the war and get 300 billion back!
Edit: someone else referred to it as the carrot (held money) and the stick (donated weapons). Carrot and stick is better than stick and stick. Better up to a point anyway...
i assume its an estimation on how much they can liquidate 50b assets. its an insane amount of money, my neighbor is selling their house and its still up years later.