Hungary will delay the final agreement on the <a href="https://time.news/group-7-plans-to-assist-ukraine-with-russian-cash/" title="Group 7 plans to assist Ukraine with Russian cash »”>G7 loan to Ukraine in the amount of 50 billion dollars until after the US presidential election by delaying its decision on the timing of the renewal of EU sanctions against Russia, Hungarian Finance Minister Mihai Varga said, quoted from Reuters.
Washington needs the EU to review the deadline for renewing sanctions every three years from the current six months in order to provide about $20 billion for the G7 loan, which will match the European Union’s contribution, officials said of the EU.
The remaining $10 billion will be provided by the G7 members Canada, Great Britain and Japan, who have already joined. The loan, agreed in principle by G-7 leaders in June, will be serviced by proceeds generated from about $300 billion of Russian central bank assets frozen in the West after Moscow invaded Ukraine in early 2022.
Washington doesn’t want to worry every six months about whether or not Russian assets will remain frozen, the officials said.
“We believe that this issue, the extension of Russian sanctions, should be decided after the US elections. We need to see in which direction the future American administration will act on this issue,” said Finance Minister Mihai Varga at a press conference, BTA reports.
The European Union said that the proceeds from all frozen Russian assets in the West could finance a loan of up to 45 billion euros.
Because most of the assets are located in Europe, the EU said it could provide up to 35 billion euros for the G7 loan. This amount will be reduced by the amount that the United States will provide.
The issue will be further discussed at the G7 finance ministers’ meeting in Washington in late October, but Hungary’s decision means that the final contributions of each G7 country will not be determined until after the November 5 election.