Giorgia Meloni: EU States Will Not Directly Participate in G7’s $50 Billion Ukraine Loan

Date:

BORGO EGNAZIA, Italy – Italian Prime Minister Giorgia Meloni clarified on Saturday that European Union states will not be directly involved in a $50 billion loan initiative for Ukraine, which the Group of Seven (G7) nations intend to fund using income generated from frozen Russian assets.

Thank you for reading this post, don't forget to subscribe!

Speaking at a news conference following the G7 summit in southern Italy, Meloni outlined that the loan, supported by interest accrued from blocked Russian funds, will primarily be financed by the United States, Canada, the United Kingdom, and likely Japan, adhering to their respective legal frameworks.

“The $50 billion loan, as announced, will be provided by the United States, Canada, the United Kingdom, and potentially Japan, within the constraints of their constitutional obligations,” Meloni stated. She emphasized that European nations are not presently partaking in this financial arrangement, citing that the frozen assets are predominantly located within Europe.

“Currently, European nations are not involved in this loan, as the assets are predominantly mobilized within Europe,” Meloni clarified, indicating that the EU’s role revolves around providing a guarantee mechanism to ensure loan repayment.

Earlier reports from EU officials had suggested that the 27-member bloc, including G7 nations France, Germany, and Italy, might contribute approximately half of the loan amount. However, Meloni’s statement diverged from this notion, asserting the current non-participation of European states in the funding mechanism.

Approximately 260 billion euros ($278 billion) of Russian assets, including central bank reserves, have been frozen under sanctions imposed after Moscow’s invasion of Ukraine in February 2022. Euroclear, a Belgium-based central securities depository, holds around 190 billion euros of these assets, underscoring the EU’s pivotal role in any potential utilization of these funds. In contrast, the United States holds approximately $5 billion worth of such assets.

The G7’s decision to leverage these frozen assets for the $50 billion loan underscores ongoing international efforts to support Ukraine amidst geopolitical tensions and economic pressures stemming from the conflict with Russia.

By Naija247news
By Naija247newshttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

Share post:

Subscribe

Popular

More like this
Related

Nigeria Sets Minimum Wage at $50 Per Month with Three-Year Review Cycle

After six months of intense negotiations, the federal government...

South Africa Introduces Five-Year Multiple Entry Visa for Nigerian Business Travelers

South Africa has launched a five-year multiple entry visa...

Nigeria’s Tinubu Sets New Minimum Wage at $43.015 Per Month

President Bola Tinubu has established a new minimum wage...

Nigeria targets 2.1 Million Barrels Per Day by December 2024

The federal government has set an ambitious goal to...
× How can I help you?