The G7 Leaders Call for $486 Billion in Russian Compensation to Ukraine.
Leaders of the Group of Seven (G7) nations have demanded that Russia pay $486 billion in damages caused by the ongoing conflict with Ukraine, according to a joint statement issued on Friday. The United States and its allies—the UK, Canada, France, Germany, Italy, and Japan—have frozen roughly $300 billion in Russian sovereign funds since the start of the war in Ukraine.
The G7 statement, published by the White House, emphasizes that Russia must end its unlawful war and compensate for the damage it has caused to Ukraine. The World Bank estimates these damages now exceed $486 billion. In response, the group declared that they will launch ‘Extraordinary Revenue Acceleration (ERA) Loans’ for Kiev, making available approximately $50 billion in additional funding by the end of the year.
To finance this effort, the G7 intends to provide loans serviced and repaid by future flows of “extraordinary revenues stemming from the immobilization of Russian Sovereign Assets” held in the European Union and other relevant jurisdictions. The statement also notes that they will work to obtain approval in these jurisdictions to use future flows of these extraordinary revenues to service and repay the loans.
The US has been advocating for a loan backed by income from the frozen Russian assets, which could provide Ukraine with billions of dollars in near-term funding. Most of the frozen assets are being held in the EU, with an estimated flow of windfall profits earned on the immobilized Russian assets amounting to around $3-$5 billion per year, according to US Treasury Secretary Janet Yellen.
Russia has consistently maintained that any actions taken against its assets would constitute “theft” and violate international law. Moscow has warned that it would retaliate if the West proceeds with confiscating Russian assets. Russian President Vladimir Putin on Friday outlined conditions for peace talks, demanding that Ukraine first remove its troops from Russia’s new regions. He also criticized Kiev’s Western backers for allegedly hindering peace talks between Russia and Moscow while accusing Russia of rejecting negotiations. Accepting these terms would allow all parties involved to turn the page and gradually restore damaged relations, Putin stated.
Ukraine’s President Vladimir Zelensky has rejected Russia’s conditions for ending the conflict, describing the peace terms as an “ultimatum.