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US, France Agree on Ukraine Funding via Russian Assets

US, France Agree on Ukraine Funding via Russian Assets

United States – President Joe Biden stated on Sunday that he talked with French President Emmanuel Macron regarding the use of funds from the frozen Russian assets to support Ukraine.

Agreement Reached on Fund Allocation

Finally, Biden was asked whether the two men had talked about the issue, and if so whether they had reached a consensus, to which Biden answered: ‘Yes and yes.’

The Group of Seven nations and the European Union are trying to decide how future revenues from Russian assets frozen in the West could give Ukraine a large initial loan, needed now to counter Russia’s actions and ensure Kyiv’s financing for the year 2025, as reported by Reuters.

Significant Frozen Assets

Approximately USD 280.9 billion of Russia’s central bank funds are blocked globally, with the majority of them in the EU. The funds generate 2.5 billion to 3.5 billion euros a year, and the EU argues that this amount is not due contractually to Russia, thus amounting to a subsidy.

Proposed U.S. Strategy

The concept popularized by the U.S. is to employ this profit as a constant source of income to repay a large loan of USD 50 billion that can be secured on the market. Russia has maintained that any shift of the revenues from the frozen money is equivalent to theft.

Some countries have raised their concerns about tapping profits from Russian assets, although a U.S. Treasury official stated that the United States and its G7 partners were working hard on this issue, as reported by Reuters.

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