The Russian foreign ministry has issued a warning to leaders of the Group of Seven countries in response to their decision to provide Ukraine with a $50 billion loan using profits from frozen Russian investments. The ministry spokesperson, Maria Zakharova, described the agreement as an 'illegal initiative' that could have negative consequences for the financial system.
Zakharova emphasized that the use of frozen Russian assets for the loan could lead to 'cataclysmic crises' and threatened 'painful' retaliatory measures against the G7 countries. She pointed out that there are significant European assets and funds in Russia, making Brussels vulnerable to potential consequences.
The loan, drawn from funds frozen by Western leaders following Russia's invasion of Ukraine in 2022, is primarily sourced from European banks, with only a fraction located in US banks. Negotiators have settled on a loan amount of approximately $50 billion to support Ukraine.
The timeline for delivering the loan is set for the end of 2024, ensuring that the funds reach Ukraine before any potential change in US leadership. With President Joe Biden and former President Donald Trump competing in the upcoming US presidential election, Trump's reluctance to commit to further financial aid for Ukraine adds complexity to the situation.
