Britain is prepared to loan Ukraine all frozen Russian central bank assets in the UK on the basis that Russia will be forced to pay reparations to Ukraine at the end of the war, UK Foreign Secretary David Cameron has said, APA reports citing The Guardian.
He said the assets would be used as surety for the payment of the reparations.
“There is an opportunity to use something like a syndicated loan or a bond that effectively uses the frozen Russian assets as a surety to give that money to the Ukrainians knowing that we will recoup it when reparations are paid by Russia. That may be a better way of doing it. We are aiming for the maximum amount of G7 and EU unity on this but if we cannot get it I think we will have to move ahead with allies that want to take this action,” Cameron stated.
The G7 has been debating for over a year whether the Russian central bank assets frozen at the time of the Russian invasion of Ukraine could also be seized without undermining faith in the international financial system.
The EU estimates around €260bn in Central Bank of Russia assets have been immobilized in the form of securities and cash in the jurisdictions of the G7 partners, the EU and Australia, with more than two-thirds of those immobilized in the EU.
