French President Emmanuel Macron, First Lady Brigitte Macron, U.S. President Joe Biden, and First Lady Jill Biden attend a gala dinner at the Elysée Palace in Paris on June 8, 2024, strengthening diplomatic ties between the two nations. File Photo: REUTERS
In Summary:
- U.S. President Joe Biden and French President Emmanuel Macron have reached an agreement on using profits from frozen Russian assets to support Ukraine.
- The Group of Seven nations and the European Union are considering utilizing around 260 billion euros ($280.9 billion) of immobilized Russian central bank funds to secure financing for Ukraine in 2025 and provide an upfront loan.
In a significant development, President Joe Biden revealed on Sunday that he and his French counterpart, Emmanuel Macron, have reached a consensus on employing the profits generated from frozen Russian assets to aid Ukraine.
When questioned about the matter, Biden concisely affirmed, “Yes and yes.”
The Group of Seven (G7) nations and the European Union (EU) are actively exploring ways to leverage the profits accrued from immobilized Russian assets in the West.
These efforts aim to provide Ukraine with a substantial upfront loan and secure its financing needs for the year 2025.
Notably, around 260 billion euros ($280.9 billion) of Russian central bank funds are currently frozen worldwide, with the majority held within the EU.
These frozen assets generate an estimated 2.5 billion to 3.5 billion euros annually in profits, which the EU considers a windfall not contractually owed to Russia.
The idea, championed by the United States, proposes using this steady revenue stream from Russian asset profits to service a substantial $50 billion loan raised on the market.
This loan could provide much-needed financial support to Ukraine in its ongoing conflict.
However, Russia has vehemently opposed any diversion of profits from its frozen funds, labeling such actions as tantamount to theft.
While some countries have expressed concerns about tapping into profits from Russian assets, a U.S. Treasury official stated on Tuesday that the United States and its G7 partners are making progress in reaching a consensus on this matter.
As the situation in Ukraine continues to evolve, the agreement between Biden and Macron highlights the commitment of Western allies to explore innovative solutions to support Ukraine’s economic and military efforts against Russian aggression.