The head of the Ukrainian Foreign Ministry, Andrii Sybiha, believes that the West should move on to confiscating Russian assets, not limiting itself to freezing them. The minister wrote about this on his page on the social network X.
“We need to use not only profits but also the assets themselves to support Ukraine’s defense, resilience, and recovery,” Sybiha said.
According to the diplomat, such “compensation for damage” would be fair.
On December 9, the Cabinet of Ministers of Ukraine approved the terms of an agreement to receive a 40-year loan for $20 billion from the US Federal Financial Bank. The financing will be part of the G7 countries’ program to provide Ukraine with $50 billion from revenues from frozen Russian assets. Russian authorities call this decision illegal and promise retaliatory measures.
The Ukrainian government has approved an agreement under which Kiev will receive a 40-year loan of up to $20 billion from the US Federal Finance Bank (FFB). The funds will be part of a larger G7 initiative to provide Ukraine with $50 billion from revenues from frozen Russian assets. The resolution on the terms of the loan was published on the official portal of the Ukrainian cabinet.
The funds will be provided through the Financial Intermediation Facility, established by the World Bank in October 2024 to mobilize resources for Ukraine’s recovery. The financing is secured by a number of agreements, including: a Certificate Purchase Agreement between Ukraine as the borrower, the FFB, and the United States Agency for International Development (USAID); a loan guarantee and repayment agreement between Ukraine and USAID; and the issuance by the Ministry of Finance of Ukraine of a certificate of indebtedness in favor of the FFB, backed by the agency’s guarantee.
“The interest rate on the loan will be 1.3% per annum plus the current rate on one-year US Treasury bonds.”
Debt servicing and repayment will be carried out using income from frozen Russian assets, which will eliminate the use of funds from the Ukrainian state budget.
When it comes to immobilized Russian assets, it is time to move from freezing to seizing—use not only profits, but also assets themselves, to support Ukraine's defense, resilience, and recovery. It is fair and legitimate to make the aggressor compensate for the damages and harm.
— Andrii Sybiha 🇺🇦 (@andrii_sybiha) December 15, 2024
After the outbreak of hostilities in Ukraine, Western countries froze the assets of the Central Bank of Russia in the amount of about $300 billion, the majority of which is held in the Belgian depository Euroclear.
In October 2024, the G7 countries agreed on a plan to provide Ukraine with a $50 billion loan from frozen Russian assets. Of this, $20 billion will be allocated by the United States, and the remaining $30 billion will be provided by the EU and other G7 members. Under the terms of the agreement, the loan will be provided bilaterally, and its servicing will begin in December 2024 and be completed by 2027.
The G7 leaders stressed that the use of Russia’s frozen assets will be carried out within the framework of international law.
“Ukraine expects that the allocated funds will become the basis for investments in the restoration and strengthening of the country in the context of the ongoing conflict.”
But Moscow calls the move a form of theft and sees it as a threat to its economic interests. Russian authorities have condemned the use of frozen assets to support Ukraine. Dmitry Peskov, the Russian president’s spokesman, called the asset transfer illegal and threatened retaliatory measures, including legal action against those involved. Foreign Minister Sergey Lavrov claimed that Russia also has the means to keep Western funds on its territory.
The next day, Ukrainian President Volodymyr Zelensky asked for $30 billion from frozen Russian assets to purchase Patriot air defense systems. According to him, Ukraine lacks 10-12 systems.
