G7 finance ministers discusssed options for using interest from frozen Russian assets to help Ukraine. Kyiv has stepped up its appeals for more international financial aid to fight off Moscow’s invasion.
Finance ministers from the G7 group of wealthy democracies on Saturday cited “progress” but no breakthrough in talks on how to use frozen Russian assets to support Ukraine as it continues to battle invading Russian forces.
The meeting of the G7 ministers in the northern Italian city of Stresa focused mainly on the question of how to find more funds for Ukraine as Russia presses on with a new offensive in the Kharkiv region in the third year of its unprovoked invasion.
The G7 and its allies froze some $300 billion (€276 billion) of Russian assets shortly after Moscow launched a full-scale invasion of its neighbor in February 2022.
The meeting comes after the EU this week formally approved a plan to use interest from the Russian assets it has frozen, estimating that this could produce up to €3 billion annually for Ukraine.
What did ministers say about the talks?
The G7 finance ministers did not report any final agreement on using Russian assets on Saturday.
“We are making progress in our discussions on potential avenues to bring forward the extraordinary profits stemming from immobilized Russian sovereign assets to the benefit of Ukraine, consistent with international law and our respective legal systems,” the ministers said in a final statement.
The ministers reiterated that Russian assets will remain frozen “until Russia pays for the damage it has caused to Ukraine.” They also raise the possibility of imposing further sanctions on Moscow.
Italian Finance Minister Giancarlo Giorgetti said that the ministers had faced technical and legal issues, but were hoping to present a proposal before a G7 leaders’ summit next month in Puglia, Italy.
“We do not deny the difficulties but there is a firm determination to arrive at a solution,” he said.
What kinds of plans were discussed?
French Finance Minister Bruno Le Maire said ministers aimed to “reach a political agreement in principle” and not a ready-made solution.
A draft statement from the meeting seen by the Reuters news agency said: “We are making progress in our discussions on potential avenues to bring forward the extraordinary profits stemming from immobilized Russian sovereign assets to the benefit of Ukraine.”
The statement contained no figures or details, reflecting the fact that several legal and technical issues need to be resolved before such loans could be made.
Any detailed agreement would require the approval of G7 leaders, who meet next month in Puglia, Italy.
The United States, for its part, has been urging its G7 partners — Japan, Germany, France, Britain, Italy and Canada — to create a loan facility for Ukraine backed by future interest generated by the frozen Russian assets.
That proposal, which could raise $50 billion in the short term for Kyiv, raises several questions, including who would issue the debt and the apportioning of risk between the G7 partners.
At the end of the meeting, US Treasury Secretary Janet Yellen said that a loan for Ukraine backed by the income from frozen Russian sovereign assets is the “main option” for G7 leaders to consider in June but added that she doesn’t want to “take anything off the table as a future possibility.”
The ministers will be joined on Saturday by Ukraine’s finance minister, Serhiy Marchenko.
Source : https://www.dw.com/en/g7-makes-progress-but-no-deal-on-russian-assets-for-kyiv/a-69181131
Dynamics of import of goods in Jan-Feb 2024 by the most important items in relation to the same period of 2023, %
Source: Open4Business.com.ua and experts.news
German Defense Minister Boris Pistorius announced the transfer of another Iris-T air defense system to Ukraine, the German defense ministry’s social network X reported on Friday.
“We have once again delivered to Ukraine a combined fire unit consisting of the IRIS T SLM and IRIS T SLS, a modern and well-proven medium and short-range air defense system, directly from the German industry,” Pistorius said.
He noted that the new air defense system will strengthen Ukraine’s air defense along with the recently delivered Patriot system.
In 2023, the countries of the European Union imported 163.7 thousand tons of honey for a total of EUR359.3 million, according to the Statistical Office of the European Union (Eurostat).
Exports of honey from the EU countries amounted to only 24.9 thousand tons worth EUR146 million.
Over 10 years, since 2013, imports have increased by 20%, exports – by 14%.
Last year, the main suppliers of honey to the EU were China (60.2 thousand tons, or 37% of all foreign supplies), Ukraine (45.8 thousand tons, 28%), Argentina (20.4 thousand tons, 12%), Mexico (10.7 thousand tons, 7%) and Cuba (4.7 thousand tons, 3%).
The UK became the main importer of honey from the European Union – 4.3 thousand tons. Saudi Arabia, Switzerland and the United States imported more than 3 thousand tons.
The largest buyer of foreign honey among the EU countries was Germany, which imported 41 thousand tons in 2023. Belgium took the second place (31.4 thousand tons), and Poland was the third (23.3 thousand tons). Spain was the leading exporter (7.1 thou tons).
Dynamics of export of goods in Jan-Feb 2024 by most important items in relation to same period of 2023, %
Source: Open4Business.com.ua and experts.news
Ukrzaliznytsia JSC (UZ) plans to purchase up to 80 modern powerful electric locomotives with funds from the European Bank for Reconstruction and Development (EBRD) and the World Bank’s RELINC project.
According to the company’s press service on Friday, the relevant tender was published on the EBRD portal. Applications will be accepted until July 22, 2024.
“According to the terms of the tender, the participants must submit two versions of the tender proposal – for the supply of 30 or 80 locomotives, depending on the availability of funding,” Ukrzaliznytsia said in a statement.
The expected total cost of the project is EUR400 million. Part of this amount – EUR 300 million – will be allocated by the EBRD under a guaranteed sovereign loan. In parallel, the project will be supported by an investment grant of $190 million from the US government, managed by the World Bank (WB) through the Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF) under the WB-managed Restoration of Critical Logistics Infrastructure and Network Connectivity (RELINC) project.
“The tender requirements stipulate that the winner, in addition to supplying locomotives, must create conditions for the maintenance and warranty repair of new traction rolling stock in Ukraine,” Ukrzaliznytsia said.
The company called this an evolutionary step, noting that it is not only purchasing equipment but also changing its approach to its maintenance.
“It will also allow us to localize the capacities for maintenance and repair of locomotives in Ukraine as much as possible,” Ukrzaliznytsia emphasized.
Earlier it was reported that the Export-Import Bank of the United States approved a decision on loan financing for the renewal of the traction rolling stock fleet with 40 diesel locomotives manufactured by Wabtec. The bank is expected to provide financing in the amount of $156 million for a period of 15 years.