BELLEAU: US President Joe Biden said on Sunday he had reached an agreement with French President Emmanuel Macron on the use of profits from frozen Russian assets to help Ukraine.

Asked if the two men had discussed the issue and whether they had come up with an agreement, Biden replied “Yes and yes.” The Group of Seven nations and the European Union are considering how to use profits generated by Russian assets immobilised in the West to provide Ukraine with a large up-front loan now and secure Kyiv’s financing for 2025.

Around 260 billion euros ($280.9 billion) of Russian central bank funds are frozen worldwide, most of it in the EU. The funds generate 2.5 billion to 3.5 billion euros a year in profit, which the EU says is not contractually owed to Russia and therefore represents a windfall.

The idea, championed by the US, is to use this profit as a steady revenue stream to service a large loan of $50 billion that could be raised on the market.

Russia says any diversion of the profits from its frozen funds would amount to theft.

Tapping profits from Russian assets has drawn concerns from some countries, but a US Treasury official said on Tuesday that the United States and its G7 partners were making progress.

Published in Dawn, June 10th, 2024

Opinion

Editorial

Military option
Updated 21 Nov, 2024

Military option

While restoring peace is essential, addressing Balochistan’s socioeconomic deprivation is equally important.
HIV/AIDS disaster
21 Nov, 2024

HIV/AIDS disaster

A TORTUROUS sense of déjà vu is attached to the latest health fiasco at Multan’s Nishtar Hospital. The largest...
Dubious pardon
21 Nov, 2024

Dubious pardon

IT is disturbing how a crime as grave as custodial death has culminated in an out-of-court ‘settlement’. The...
Islamabad protest
Updated 20 Nov, 2024

Islamabad protest

As Nov 24 draws nearer, both the PTI and the Islamabad administration must remain wary and keep within the limits of reason and the law.
PIA uncertainty
20 Nov, 2024

PIA uncertainty

THE failed attempt to privatise the national flag carrier late last month has led to a fierce debate around the...
T20 disappointment
20 Nov, 2024

T20 disappointment

AFTER experiencing the historic high of the One-day International series triumph against Australia, Pakistan came...