Treasury Secretary Janet Yellen on Sunday reaffirmed the legality of the Group of Seven (G7)’s $50 billion loan to Ukraine and praised the strong alliance between Western countries.
“It doesn’t make sense that this is theft,” Yellen told ABC News’ Jonathan Karl when asked on “This Week” whether she is worried about Russian President Vladimir Putin calling the loan “theft” and saying that “he will not go unpunished”. ”
G7 member states announced Thursday an agreement to move forward with a $50 billion loan to Ukraine, financed by interest generated on Russian assets frozen in Europe and the US.
G7 members froze about $280 billion in Russian assets after the invasion began in February 2022, and the proposal would use the interest generated on the frozen assets, which are about $2.6 billion to $3.6 billion. billion dollars a year, to repay a loan of 50 billion dollars to be provided to Ukraine immediately.
The deal marks a significant achievement for President Biden, with the US leading the effort to get Ukraine’s supporters to agree to seize Russian assets to support Kiev and combat Putin.
“Russia’s funds are in cash, but they are generating income for the institution, which Russia has no rights over,” Yellen said, “so there is no legal problem here.”
“And our allies, our partners, the G7, will grant Ukraine a loan of 50 billion dollars, which will be repaid over time with these proceeds,” he added. “I would say that the G7 leaders have already made it clear that they will not unfreeze these assets until Russia pays for the damage they caused to Ukraine.
The commitment by G7 countries comes at a time when Russia’s more than two-year illegal war against Ukraine is damaging unity among Kiev’s military and financial backers.
This translated into battlefield losses for Ukraine without adequate military supplies, although Ukraine managed to largely repel Russia’s latest offensive around the city of Kharkiv.
Yellen described the dynamic as a “battle of wills” and said she thinks Putin is waiting for Ukraine’s supporters to give up on war-torn democracy.
“We are really in a battle of wills with Putin,” she said. “Putin, I think, believes that our coalition will fall apart, in the sense that we will not continue to provide Ukraine with the resources it needs to fight this war and keep its economy going. And this is a way of showing that we have the capacity and desire to do it.”
At a press conference alongside Ukrainian President Volodymyr Zelensky on Thursday, Biden announced the G7 loan, which he said should also serve as a reminder to Putin that “we will not back down.”
“Indeed, we are united against this unlawful aggression,” Biden added.
This story originally appeared on thehill.com read the full story
