(Bloomberg) -- Group of Seven nations are making “good progress” in finalizing plans to use windfall profits from frozen Russian assets for aid to Ukraine and should have a framework in place by October, according to European Union Economics Commissioner Paolo Gentiloni.
That would allow countries to tap markets by the end of the year, he said in Rio de Janeiro, where he is attending meetings of Group of Twenty finance chiefs.
“We are making very good progress technically, but also politically” toward “this extraordinary loan for Ukraine,” he said. “Technical and political convergence is very clear and positive, and I’m confident we’ll be able to have the frame in place by October.”
The EU, the US and other G-7 allies are trying to conclude plans to provide Ukraine with $50 billion in loans by the end of the year, using windfall profits generated by immobilized Russian central bank assets. Most of those assets are in Europe, whose sanctions regime requires an extension every six months by a unanimous vote of all 27 member states.
Ahead of this week’s meetings, the US had raised concerns over that setup and asked for more durable assurances that the assets would remain frozen.
The EU presented its member states with two options to address the issue, according to a draft document seen by Bloomberg. One is an open-ended immobilization of the assets that would be reviewed at regular intervals, another a lengthening of the roll-over period to, for example, 18, 24 or 36 months.
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