G7 leaders finalize deal to use Russia assets for $50B Ukraine loan
G7 leaders finalize deal to use Russia assets for $50B Ukraine loan
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.
So brave of these people to profit from this war. \s
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A loan? A fucking loan!? You spineless potato-fuckers. GIVE! Give it to them! What the hell is wrong with you!?
Read the article, then comment. Then you can avoid embarrassing yourself.
It's a loan that the Russians are forced to repay with the profits of their assets.
In a way it's better than just giving them money, because instead of letting Ukraine get Russia's bank account, they let them get some credit cards out in Russia's name and go wild.
The whole point of these imperial conflicts is for international capital to profit.