Kiev given green light to spend UK loan tied to ‘stolen’ Russian assets — RT Russia & Former Soviet Union
London earlier pledged to contribute $2.8 billion for Ukraine aid as part of G7 loans to be repaid by profits from Moscow’s frozen funds
Kiev has received final approval to tap a £2.26 billion ($2.8 billion) UK loan linked to profits generated by frozen Russian assets. Ukraine’s Cabinet of Ministers approved a draft law on Friday that allows Kiev to allocate the funds, the Defense Ministry announced in a statement.
The money is part of the G7’s ‘Extraordinary Revenue Acceleration’ $50 billion loan approved for Ukraine last year, to be repaid using profits generated by the immobilized Russian funds. The legislation to disburse the loan was granted royal assent on January 16, following the signing of the UK-Ukraine 100 Year Partnership Agreement. According to Ukraine’s Defense Ministry, the funds will mostly be spent on air defense, as well as repair and production of weaponry and military equipment.
Following the escalation of the Ukraine conflict in February 2022, Western states froze an estimated $300 billion worth of funds belonging to the Russian central bank. Of the $300 billion in immobilized Russian assets, around $213 billion is currently held in the Brussels-based clearinghouse Euroclear. The funds have already generated billions in interest, with the clearinghouse transferring €1.55 billion ($1.63 billion) directly to Ukraine in July last year.
The decision to tap frozen Russian assets has sparked debate among G7 members, with countries such as Germany, France, and Italy raising legal concerns. The IMF has also warned that seizing these assets without a clear legal framework could undermine global confidence in the Western financial system.
Moscow has condemned the use of its frozen assets, calling it “theft.” Kremlin spokesman Dmitry Peskov warned in December that Russia would pursue legal action against any attempts to channel the funds to Ukraine.
“Speaking in plain Russian, this money was stolen from us. Our assets have been frozen absolutely illegally, against all norms and rules,” Peskov said, responding to the US transfer of a $1 billion installment from frozen Russian assets to Ukraine. He added that Russia would exhaust all legal avenues to protect its property and rights. Finance Minister Anton Siluanov earlier warned that there are plans to mirror the West’s actions, tapping income from frozen Western assets in Russia.
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Russia drafting new law to seize Western assets – media
Separately on Friday, Finland’s Defense Ministry announced its 27th military aid package for Ukraine, valued at €198 million. It is unclear where the funds will originate, as the ministry refused to disclose information on the specific content, delivery method, or schedule of the aid, citing operational reasons.
