Giving Ukraine $50 billion of frozen Russian assets sends clear signal to Putin – Scholz
Volodymyr Zelenskyy and Olaf Scholz (Photo: EPA)

Plans by the Group of Seven to provide additional financial support to Ukraine involving frozen Russian assets show a strong commitment, said German  Chancellor Olaf Scholz at the annual G7 summit on Thursday, Reuters reports.

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The German official considers this decision a historic step.

"This is a very clear commitment that should embolden the Ukrainians to do what they need to defend their independence and sovereignty," said the chancellor.

Scholz also emphasized that this is a clear signal to Russian dictator Vladimir Putin – "he can't just sit this out and hope that fiscal problems in a country that backs Ukraine will one day let him win this war."

On June 13, the leaders of the G7 member states agreed to transfer $50 billion to Ukraine using the frozen assets of the Russian Federation.

The G7 plans to create a new fund to support Ukraine, using future income from frozen Russian assets, the Japanese newspaper Nikkei reported. According to the plan, the fund will provide money to Ukraine in the form of grants, so it will not need to be returned.

On June 8, French President Emmanuel Macron said that they, together with American leader Joe Biden, hope that all G7 countries will agree to such a fund for Ukraine.

On May 21, the Council of the European Union agreed to use the proceeds from frozen Russian assets for the benefit of Ukraine. But the European plan provides that the money will be given as it comes in – twice a year.

The US proposes to collect this money in advance for several years ahead, secured by future revenues. This plan is to be approved by G7 leaders.