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Italy is working on implementing an agreement to provide Ukraine with a loan, which will be repaid using frozen Russian assets.
This was stated by Italian Prime Minister Giorgia Meloni, as quoted by Reuters.
In June, during the annual summit in southern Italy, the G7 countries agreed to grant Ukraine a loan, which would be financed through frozen Russian assets.
Meloni assured that work on this agreement is ongoing.
“We will continue to work on the implementation of the loan agreement for Ukraine, backed by interest accrued on Russian assets frozen in Europe, which is an important outcome of Italy’s G7 presidency,” she stated.
This plan involves a $50 billion loan for Ukraine, agreed upon by G7 leaders, which will be repaid from the profits of investing frozen Russian assets.
As part of the plan, the EU is expected to provide €35 billion, while the remainder will come from other G7 countries. The U.S. is particularly keen for the European Union to extend the review and renewal period of sanctions from the current six months to a longer term to ensure that Russian assets remain frozen. Hungary’s blockade pertains specifically to this decision within the EU, rather than the decision regarding the “European” portion of the loan.
Recently, Politico reported that Hungarian Prime Minister Viktor Orbán refuses to approve the extension of sanctions against Russia, which could complicate the provision of loans to Ukraine from frozen Russian assets, potentially aiding U.S. presidential candidate Donald Trump.
Read also: EU to respond to Russian attacks on Ukraine by increasing support – Borrell
