Ukraine’s Prime Minister Denis Shmigal demanded that no conditions be attached to a $50 billion loan from G7 members backed by seized Russian assets. Speaking at the ‘Ukraine 2024. Independence’ forum, Shmigal stated that while G7 leaders agreed to lend the amount in June, Kiev insists on a certain “political framework” related to the funds. He emphasized that the funds should be provided without any conditions and interest-free, not affecting an increase in the state debt.
The prime minister highlighted that Ukraine must use the loan primarily for compensating damages from the conflict and expressed hope that Kiev could use the funds to finance the budget and the military. Shmigal acknowledged that providing Ukraine with this loan is a difficult task, as G7 countries and the EU need to find consensus on how to provide the money.
Shmigal mentioned that the frozen Russian assets amounting to $300 billion would compensate for the funds, generating an annual interest of $3-4 billion. He pointed out Ukraine’s dire financial situation, with a $35 billion deficit in next year’s budget and a need to cover $15 billion through some means. The prime minister stressed that Ukraine’s goal is to get all $300 billion frozen.
While Western nations have discussed the confiscation of Russian assets, they have yet to act due to legal and public image concerns. However, G7 members have agreed to use profits from these assets to finance Ukraine. Moscow has denounced the asset freeze as “theft” and criticized the West’s decision to use profits from Russian money to help Ukraine as “criminal, cynical, and another blow to international law.