The G7 countries want billions in financial aid for Ukraine. Russia is supposed to pay indirectly. The deal is almost done.
A breakthrough is expected in the struggle for a $50 billion international loan for Ukraine, which has been attacked by Russia. The US is expected to contribute $20 billion to the G7 package, US Treasury Secretary Janet Yellen said in Washington. The German Finance Minister Christian Lindner welcomed this and announced: “This also clears the way for support from the European Union to the tune of 18 billion euros.” That’s also around $20 billion. The remaining $10 billion will come from Great Britain, Japan and Canada.
“We are on the verge of a breakthrough in support for Ukraine this week,” said the FDP leader during a visit to New York. It is about a loan of 50 billion US dollars that the seven large western industrialized countries (G7) and representatives of the EU agreed on at a summit in June. The special thing about it: It is secured by interest income from frozen Russian central bank assets.
Russia should pay indirectly for credit
Yellen emphasized that the source of funding for this Ukraine support is not the American taxpayer. “What is happening here is that Russia is paying for this support,” said the US minister. Ukraine should be able to decide for itself how it uses the money – for example for weapons purchases, reconstruction and the budget.
Putin had sharply criticized the plan and classified it as robbery. The G7’s decision “will not go unpunished,” he said.
Yellen: 99 percent on target
According to Yellen, however, a little work is still necessary before the final details are finalized. “Let me say that we are 99 percent there, and it’s just a matter of nailing down a few relatively small things,” she said. The EU Parliament in Strasbourg had previously approved a loan for Ukraine of up to 35 billion euros. Great Britain has also announced that it will contribute a loan of 2.26 billion pounds (around 2.71 billion euros) to the package.
An agreement is expected between those involved by the end of the week – on the sidelines of the International Monetary Fund’s annual meeting in Washington. It was possible this week to send a clear signal that the G7 and the European Union were united in defending the international order by supporting Ukraine in its right to self-defense, emphasized Lindner.
Source: Stern
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