Biden and France’s Macron agree to use Russian assets in Ukraine

BELLEAU (France) (Reuters), U.S. president Joe Biden announced on Sunday that he and French President Emmanuel Macron had agreed to use the profits from Russian assets frozen in order to assist Ukraine.

Biden responded “Yes, and yes” when asked if they had discussed this issue and if they had reached an agreement.

The Group of Seven and the European Union have been discussing how to use the profits from Russian assets that were immobilized by the West in order to give Ukraine a large upfront loan and ensure Kyiv’s financing until 2025.

Around 260 billion euro ($280.9 billion), or around 80%, of the Russian central bank’s funds have been frozen in various parts of the world. The majority of these funds are located in Europe. The funds produce 2.5 billion to 3 billion euros in profit per year, which is what the EU claims Russia does not owe.

The U.S. has proposed to use the profits as a regular revenue stream for servicing a large 50 billion dollar loan that could be raised in the market. Russia claims that any diverting of profits from its frozen fund would be theft.

Some countries have expressed concern about the United States’ decision to tap into profits from Russian assets. However, a U.S. Treasury Official said that Tuesday the United States and G7 partners are making progress.

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