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Will US & G7 Leaders Make Russia Fund Ukraine’s $50 Billion Loan? | Vantage with Palki Sharma

  • June 12, 2024



Will US & G7 Leaders Make Russia Fund Ukraine’s $50 Billion Loan? | Vantage with Palki Sharma

the G7 Summit kicks off tomorrow we told you about the agenda yesterday there’s a host of issues that these leaders have to address but one thing stands out and that is tackling Russia the G7 is once again gearing up to take an aim at Russia specifically Russian money they want to use Russian assets to provide financial assistance to Ukraine Reports say the deal is done only some last minute details are being finalized and that the US is confident of making an announcement during the G7 Summit we will announce new steps to unlock the value of the immobilized Russian Sovereign assets to benefit Ukraine and to help them recover from the destruction that Mr Putin’s Army has caused now this would be a significant move it would have wide ranging implications for the Global Financial system it could undermine the world’s trust in the system it’s like your neighbor going to a mall and buying products worth billions of dollars but they are not the ones paying the bills you are because your bank decided to charge your credit card for their shopping and that too without your consent that’s what the West is doing here with Russian assets Moscow had assets worth $280 billion in Western financial institutions when the war in Ukraine began in 2022 Western governments froze these Russian assets they were pared in the west mostly in three countries Belgium France and Germany now this money is lying with the banks in the form of Securities and cash and the these assets have been frozen meaning Russia cannot access its own funds but the money is still lying in the bank and it’s generating interest just like a fixed deposit in a bank would the West wants to give this Russian money to Ukraine and this would be done in the form of a loan that’s what the Americans have proposed here’s their plan the G7 will extend a $50 billion loan to Ukraine the repayments could be financed through the earnings of the Russian assets this is the interest generated by by Russian government assets lying in the west and this interest is significant every year these assets could generate more than 2 a half to35 billion doar in interest $3.7 billion According to some estimates this money could be diverted to repay the $50 billion loan European leaders are calling this a solidarity package for Ukraine we will meet again about this at the G7 Summit where we both hope all G7 members will we agree again to commit to a solidarity package to Ukraine of $50 billion now this plan has three benefits for the West First it ensures an uninterrupted flow of funds for Ukraine second Russia loses the profits its core investment stays intact but Moscow will lose the earnings from interest and third Russian assets will become bargaining chips for future negotiation with Moscow for potential peace talks now if this plan goes through what will Russia do get can Moscow stop the west from diverting its money and handing it over to Kev back in the month of March Russia had threatened to sue the West the Kremlin had said that if profits from its assets are diverted it will use and I’m quoting all possible judicial mechanisms to hit back at Europe we consider any attacks by the European Union or by anybody else against Russian assets as a legal and in violation of the fundamental princip of international law we are talking about another attempt to legitimize theft at state level but the EU is ready to push back so there could be a legal faceof although Vladimir Putin is going a step further now last month the Russian president signed a decree which gave the Russian State some new powers if they want they can now simply seize any Western asset in Russia this includes Properties Real Estate Securities even Western stakes and Russian companies they can take all of it and the Russian State can now step in and simply take over Moscow claims it has identified some assets already these assets are worth $290 billion currently they’re owned by Western interests so if the G7 goes ahead with this plan Moscow is expected to respond in kind and this battle is expected to escalate but it’s not just about Russia and the West this face off sends a troubling signal to the rest of the world too Financial assets of sovereign nations are being weaponized here this is already leading to unintended consequences central banks around the world are nervous today is Russia tomorrow it could be them their assets held by Western institutions could also be frozen in a similar fashion so this is a clear vulnerability they’re increasing their gold reserves and they prefer to hold them at home now within their borders that’s what banks are doing in 2020 50% of the world central banks held part of their gold reserves at home home by 2023 this number shot up to 68% and it’s likely to go further up by 2028 74% of the central banks may move most of their gold reserves back home recently India’s RBI The Reserve Bank of India also shifted around 100 tons of its gold back from the UK to India this was a rare move since 1991 the RBI did not think about executing such a transfer and how much gold does the RBI have in its Reserve Reports say around 822 tons of gold so part of it is outside India the other half stays in India so how did the RBI explain this move the central bank said it had the space to store the gold within the country so it decided to use that space there was no mention of the geopolitical tensions between Russia and the west but it goes without saying that these tensions are influencing the decisions of central banks around the world their faith in the international banking system is eroding the G7 May succeed in transferring Russian money to Ukraine but they would end up paying a huge price for it fan of Italy’s famous Cuisine well we are serving it with a side of diplomacy as the G7 leaders gather in southern Italy Vantage is taking you to the heart of the action what’s the agenda who is invited and how is Italy preparing for it catch the special edition of advantage throughout this week only on first post fan of Italy’s famous Cuisine well we are serving it with a side of diplomacy as G7 leaders gather in southern Italy Vantage is taking you to the heart of the action what’s the agenda who’s invited and how is Italy preparing for it catch the special edition of Vantage throughout this week only on first post first post reports from the world’s second largest continent hello I’m Allison lrange a very warm welcome from Durban South Africa we get you the news and the newsmakers from Africa from elections to climate change to Innovations and opportunities as the world’s attention shifts we report from from Africa the heart of the global South join me every weekday live on first post [Music]

Will US & G7 Leaders Make Russia Fund Ukraine’s $50 Billion Loan? | Vantage with Palki Sharma

The G7 summit starts tomorrow. Western Leaders are expected to hold discussions on using frozen Russian assets to provide financial assistance to Ukraine. The US has proposed a plan to extend a $50 billion loan to Ukraine. The loan could possibly be repaid by the interest generated from $280 billions of frozen Russian sovereign assets held in the West. This move has sparked controversy. While the West sees it as a way to support Ukraine and pressure Russia, there are concerns about its legality and potential consequences. Russia has threatened to retaliate against the West, if they go ahead with this plan. The EU believes they can defend themselves in court, but there is a risk of a prolonged legal battle. Moscow has responded by signing a decree allowing them to seize Western assets held in Russia, potentially worth $290 billion. This tit-for-tat action could escalate tensions further. Palki Sharma tells you more.

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Russia | Ukraine | War | USA | Russian Assets | Ukraine Loan | G7 Summit | Italy | Russia | Ukraine | Firstpost | World News | News Live | Vantage | Palki Sharma | News

#russiaukrainewar #g7summit #usa #russia #assets #ukraine #loan #italy #vantageatg7 #firstpost #vantageonfirstpost #palkisharma #worldnews

Vantage is a ground-breaking news, opinions, and current affairs show from Firstpost. Catering to a global audience, Vantage covers the biggest news stories from a 360-degree perspective, giving viewers a chance to assess the impact of world events through a uniquely Indian lens.

The show is anchored by Palki Sharma, Managing Editor, Firstpost.

By breaking stereotypes, Vantage aims to challenge conventional wisdom and present an alternative view on global affairs, defying the norm and opening the door to new perspectives. The show goes beyond the headlines to uncover the hidden stories – making Vantage a destination for thought-provoking ideas.

Vantage airs Monday to Friday at 9 PM IST on Firstpost across all leading platforms.
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36 comments

  6. Decisions of G7 members firstly to freeze foreign assets in their countries and secondly to confiscate, at their like, revenues coming from those, perhaps do they mean that the property of any foreign investments is in danger there?

  7. G7 Countries and Indian Government is having the same future vision, G7 loads money to Ukraine war which is no use only middlemen will loot similarly Indian government loading all Contracts and national funds aligned towards Adani and Ambani is going to be futile too… 😀

  8. Who are they to draw the line, that's outright theft and "The people " are witnessing this. 50 billion dollars without a consent. I hope the world nations should loose trust in such a system.
    This could happen to anybody nation.
    America is pursuing its own interests at the expense of the systems and civilization that took long to build.

  10. How shameful to give our tax dollars to Ukraine military instead of helping our people. Bush Sr, Mitterrand, Tatcher, Kohl, all made a agreement with Russia to leave Ukraine neutral of their mutual military in exchange for reunification of Germany. James Baker, the secretary of state of the US, agreed with PM of Russia, Then Mickael Gorbachev and his secretary Edward Shevernatze, to leave Ukraine neutral for Russia security. Shame on Biden, he is totally responsible for that War and the 1 million deaths

  11. Cartoons America uk nato, Russ making them unnecessarily spend in billions of dollars, air sea land. In the meantime china makes tension fir america, Russ visit Korea shakes America uk, iran iraq gaza houtis Yemen egypt threatening america uk Israel, what's happening to America is becoming more depend ent on nato n is surround ing them.. Europe Secretly helping Russ to deploy nukes. Dollar down from brics Asians angry… ?

  26. The West engineered the war and it's now forcing Russia to pay for it. This is the worst extortionist move by the West against a sovereign country in modern times and it's already backfiring even before they started. The world surely need BRICS+ .

  31. I wish the whole world would go against the west. The rest of the world should come up with a plan to isolate the west and nato countries or else they will keep dominating and we have to entertain their tantrums.

  32. Why doesn't America come up with these deals instead of just giving free while they hire 1000s of irs agent to collect for American people to keep funding endless wars

  34. So the 50b will be use to profit the manufacturers of war machines in the US and the Western nations. The war must continue they say so let’s fund it by stealing Russia’s money.
    That is very funny I think

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