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G7’s controversial plan to use frozen Russian assets for Ukraine faces criticism and retaliatory measures

Russian frozen assets news

The G7’s decision to utilise frozen Russian assets to raise $50 billion for Ukraine has sparked controversy and potential backlash.

While US President Joe Biden framed the move as a firm message to Russia, Moscow has threatened severe retaliatory measures. Critics argue that the delay in disbursing the funds until the end of the year diminishes its immediate impact on Ukraine’s war effort, raising questions about the practicality of this long-term ‘financial solution.’

The funds, sourced from interest generated by $325 billion worth of frozen Russian assets, will be used to pay off the annual interest on the loan, leaving some to doubt its effectiveness in addressing Ukraine’s urgent needs.

At the G7 summit in Italy, the US and Ukraine also signed a 10-year security deal, but it stops short of committing US troops to the conflict. Some advocates in Kiev had hoped for the release of the entire $300 billion frozen fund rather than just the interest, highlighting a sense of unmet expectations.

The European Central Bank’s refusal to fully release the assets further complicates the situation. Critics emphasise that while symbolic, the delayed loan may do little to shift the current dynamics of the war, as Ukraine continues to urgently request more immediate military aid, including air defense systems and F-16 fighter jets. Russia has threatened “extremely painful” retaliation – evidence of the high stakes and potential risks of the controversial financial manoeuver.

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4 COMMENTS

  1. While the US and EU are busy seizing Russian assets (like pirates of the past) and using them for their and Ukraine’s benefit, Russia and other countries are busy moving away from the US dollar.

  2. US citizen here 👋. NO WAY agree with this!
    Stealing is stealing no matter the excuse!
    (Can’t say I’m surprised though. Since they’ve been stealing from us citizens for years!)

  3. Russia must ensure that the damage they inflict on the nazi enemy is of far greater monetary value than the money that is stolen from them!

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