EU expects agreement on US$ 50bn from Russian assets for Ukraine to be concluded by October

Paolo Gentiloni, European Commissioner for Economics, anticipates that the Group of Seven countries will reach a framework deal to provide Ukraine with a US$50 billion loan from Russia's frozen assets by October.

As reported by Reuters, speaking to reporters on the sidelines of a G20 meeting of finance ministers and central bank governors in Rio de Janeiro, the European Commissioner stated that great progress has been achieved on the technical and legal aspects of the loan for Ukraine.

"I am confident we will be able to have this in place by October. By October I mean the frame. Then, of course, by the end of the year you have to go to markets, but every country is different," Gentiloni said.

He believes the parties are making "very good progress" both technically and politically.

According to Reuters, EU ambassadors discussed two possibilities on Wednesday, 24 July, aimed at alleviating G7 member states' concerns that there may come a day when the 27 EU member states will not agree, jeopardising all credit for Ukraine.

One of them is the indefinite prolongation of the sanctions regime, which has immobilised the Russian Central Bank's assets. Another option, according to the agency, is to extend restrictions on Russian assets to three years.

In June, Italian Prime Minister Giorgia Meloni revealed that the leaders of the Group of Seven reached a political agreement to provide Ukraine with around US$50 billion in financial support derived from frozen Russian assets.

As expected, the European Union would provide the most of the loan to Ukraine at the expense of Russian assets. Josep Borrel, the top EU official for foreign policy and security policy, announced that the EU will direct the first tranche of frozen Russian assets to the procurement of armament for Ukraine at the beginning of August.