05.09.2024, 17:08
The EU and G7 intend to provide Kiev with a loan repaid from the assets of the Russian Federation
Source: OREANDA-NEWS
OREANDA-NEWS The EU and the G7 countries intend to provide Ukraine with a loan in the amount of about $ 50 billion with repayment from proceeds from frozen assets of the Russian Federation, a representative of the EC press service told RIA Novosti.
"On the part of the European Commission, we are moving forward in this work (on the preparation of the proposal – ed.). The work continues," the agency interlocutor said. He added that "the goal is to jointly provide Ukraine with about 50 billion US dollars in loans by the end of the year with partners in the Big Seven."
"Unforeseen profits from Russian frozen assets will be used to repay these loans… We are already using this profit for military support of Ukraine and its restoration," the EC representative explained.
Earlier, Western media reported on disagreements between the EU and the United States on the issue of guarantees for this loan. In particular, Washington allegedly insists that the EU freeze these funds indefinitely, thus guaranteeing their use to repay the loan to Kiev. However, there is still no consensus on this issue among the EU countries where most of the frozen Russian funds are stored.
On Wednesday, Hungary, which holds the presidency of the EU Council, excluded from the agenda of the meeting of the permanent representatives of the Union countries the issue of using the proceeds from frozen Russian sovereign assets to service and repay loans to help Kiev. During this discussion, the Permanent representatives also wanted to hear from the European Commission on its loan proposal.
The media reported that the discussion was canceled due to the fact that the EC had still prepared a proposal.
In July of this year, European Commissioner for Economics Paolo Gentiloni announced that the European Commission was urgently preparing its proposal for a $50 billion loan to Kiev, repaid at the expense of frozen assets of Russia, but under the guarantee of the reserve budget of the European Union. He stated the EC's desire to prepare such a proposal as soon as possible, since the mechanism proposed by the commission is based on guarantees of the EU budget reserve, which, according to him, can only be used until the end of this year.
After the EC's proposal is officially submitted, it will be discussed in a trilateral format with the participation of the Commission, the EU Council and the European Parliament. Then formal approval procedures will be required at the plenary session of the EP.
"On the part of the European Commission, we are moving forward in this work (on the preparation of the proposal – ed.). The work continues," the agency interlocutor said. He added that "the goal is to jointly provide Ukraine with about 50 billion US dollars in loans by the end of the year with partners in the Big Seven."
"Unforeseen profits from Russian frozen assets will be used to repay these loans… We are already using this profit for military support of Ukraine and its restoration," the EC representative explained.
Earlier, Western media reported on disagreements between the EU and the United States on the issue of guarantees for this loan. In particular, Washington allegedly insists that the EU freeze these funds indefinitely, thus guaranteeing their use to repay the loan to Kiev. However, there is still no consensus on this issue among the EU countries where most of the frozen Russian funds are stored.
On Wednesday, Hungary, which holds the presidency of the EU Council, excluded from the agenda of the meeting of the permanent representatives of the Union countries the issue of using the proceeds from frozen Russian sovereign assets to service and repay loans to help Kiev. During this discussion, the Permanent representatives also wanted to hear from the European Commission on its loan proposal.
The media reported that the discussion was canceled due to the fact that the EC had still prepared a proposal.
In July of this year, European Commissioner for Economics Paolo Gentiloni announced that the European Commission was urgently preparing its proposal for a $50 billion loan to Kiev, repaid at the expense of frozen assets of Russia, but under the guarantee of the reserve budget of the European Union. He stated the EC's desire to prepare such a proposal as soon as possible, since the mechanism proposed by the commission is based on guarantees of the EU budget reserve, which, according to him, can only be used until the end of this year.
After the EC's proposal is officially submitted, it will be discussed in a trilateral format with the participation of the Commission, the EU Council and the European Parliament. Then formal approval procedures will be required at the plenary session of the EP.
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