G7: Russian asset freeze to continue until Moscow compensates Ukraine for damages

The Group of Seven (G7) has no plans to automatically unfreeze Russian assets following the conclusion of the conflict in Ukraine.

It insists that Moscow must first compensate Kyiv for the damages caused, Caliber.Az reports via Japanese media.

Italy stated in a draft G7 leaders' statement, “We confirm that Russian sovereign assets under our jurisdiction will remain frozen until Russia ends its aggression and pays for the harm inflicted on Ukraine.”

The G7 is also set to provide Kyiv with a $50 billion loan as part of its planned assistance, with the final version of the statement expected to be released later this year.

During the G7 summit in June, leaders reached a political agreement regarding the use of proceeds from frozen Russian assets to support Ukraine. Italian Prime Minister Giorgia Meloni announced on June 13 that the G7 had agreed to extend financial aid to Ukraine totalling approximately $50 billion by the year's end, emphasizing that this would come from a system of loans, not through the confiscation of Russian assets.

European Commission President Ursula von der Leyen echoed this sentiment, confirming that the G7 had agreed to facilitate loans to Ukraine funded by the returns from Russian sovereign assets.

G7 nations had settled on a loan structure to support Ukraine, with the aim of delivering $50 billion in aid by the end of this year. The loans will be structured based on the economies of the participating G7 countries, using profits from approximately $280 billion in frozen Russian assets, the majority of which are currently immobilized in Europe.

By Tamilla Hasanova