{"id":395,"date":"2025-09-21T14:30:42","date_gmt":"2025-09-21T11:30:42","guid":{"rendered":"https:\/\/ukrmedia.news\/?p=395"},"modified":"2025-09-21T14:32:13","modified_gmt":"2025-09-21T11:32:13","slug":"g7-model-in-action-london-wants-to-lend","status":"publish","type":"post","link":"https:\/\/ukrmedia.news\/en\/politics\/g7-model-in-action-london-wants-to-lend\/","title":{"rendered":"The G7 model in action: London wants to lend to Ukraine for profits from Russian assets"},"content":{"rendered":"<h2 data-start=\"0\" data-end=\"77\">Britain proposes to provide loans to Ukraine from frozen Russian assets<\/h2>\n<ul data-start=\"90\" data-end=\"598\">\n<li data-start=\"90\" data-end=\"308\">\n<p data-start=\"92\" data-end=\"308\">London is promoting the idea of a so-called <strong data-start=\"125\" data-end=\"147\">\u00abreparations loan\u00bb<\/strong> - of loans to Ukraine secured by revenues from <strong data-start=\"200\" data-end=\"234\">frozen Russian assets<\/strong>, without confiscating the capital itself.<\/p>\n<\/li>\n<li data-start=\"309\" data-end=\"598\">\n<p data-start=\"311\" data-end=\"598\">The mechanism is based on the G7 decision to <strong data-start=\"349\" data-end=\"375\">ERA loan for $50bn<\/strong>, to be serviced by interest\/excess profits from Russia's immobilised assets. The UK has already provided Kyiv with <strong data-start=\"478\" data-end=\"492\">\u00a32.26bn<\/strong> in this format, Ukraine received the first tranche in March 2025.<\/p>\n<\/li>\n<\/ul>\n<hr data-start=\"600\" data-end=\"603\" \/>\n<h2 data-start=\"605\" data-end=\"618\">What happened<\/h2>\n<p data-start=\"619\" data-end=\"1004\">The British government reported that <strong data-start=\"650\" data-end=\"671\">is studying the expansion<\/strong> a \u00abreparations loan\u00bb instrument - loans to Ukraine secured by the revenues generated by the frozen assets of the Russian central bank and other sovereign funds under sanctions. The idea allows for <strong data-start=\"854\" data-end=\"892\">not to touch the principal amount of assets<\/strong>, but to use the interest income to service Ukraine's debt.<\/p>\n<hr data-start=\"1006\" data-end=\"1009\" \/>\n<h2 data-start=\"1011\" data-end=\"1026\">How it works<\/h2>\n<ul data-start=\"1027\" data-end=\"1389\">\n<li data-start=\"1027\" data-end=\"1210\">\n<p data-start=\"1029\" data-end=\"1210\"><strong data-start=\"1029\" data-end=\"1037\">The bottom line.<\/strong>Russian assets remain blocked; <strong data-start=\"1076\" data-end=\"1100\">interest\/excess profits<\/strong> (The windfall profits from them are used to pay off loans to Ukraine.<\/p>\n<\/li>\n<li data-start=\"1211\" data-end=\"1389\">\n<p data-start=\"1213\" data-end=\"1389\"><strong data-start=\"1213\" data-end=\"1231\">Legal logic<\/strong>The use of the proceeds, rather than the confiscation of the hull, reduces legal risks and political objections, particularly within the EU.<\/p>\n<\/li>\n<\/ul>\n<hr data-start=\"1391\" data-end=\"1394\" \/>\n<h2 data-start=\"1396\" data-end=\"1424\">What Britain has already done<\/h2>\n<p data-start=\"1425\" data-end=\"1772\">On 1 March 2025, the UK government announced <strong data-start=\"1476\" data-end=\"1500\">a \u00a32.26bn loan<\/strong> to strengthen Ukraine's defence capabilities, explicitly stating that <strong data-start=\"1562\" data-end=\"1580\">maintenance<\/strong> The loan will be repaid from the proceeds of frozen Russian assets. On 7 March, Kyiv confirmed <strong data-start=\"1692\" data-end=\"1722\">receipt of the first tranche<\/strong> (~$1 billion).<\/p>\n<hr data-start=\"1774\" data-end=\"1777\" \/>\n<h2 data-start=\"1779\" data-end=\"1799\">G7 and EU context<\/h2>\n<ul data-start=\"1800\" data-end=\"2238\">\n<li data-start=\"1800\" data-end=\"2021\">\n<p data-start=\"1802\" data-end=\"2021\">The G7 Summit in 2024 agreed to <strong data-start=\"1835\" data-end=\"1879\">Extraordinary Revenue Acceleration (ERA)<\/strong> - <strong data-start=\"1882\" data-end=\"1894\">$50 billion<\/strong> through a number of bilateral loans paid from the proceeds of frozen Russian assets.<\/p>\n<\/li>\n<li data-start=\"2022\" data-end=\"2238\">\n<p data-start=\"2024\" data-end=\"2238\">In parallel <strong data-start=\"2035\" data-end=\"2050\">European Commission<\/strong> promotes a \u00abreparation loan\u00bb scheme in the EU (including the option of issuing special bonds) to speed up funding for Ukraine and circumvent possible vetoes.<\/p>\n<\/li>\n<\/ul>\n<hr data-start=\"2240\" data-end=\"2243\" \/>\n<h2 data-start=\"2245\" data-end=\"2265\">Why does Ukraine need it?<\/h2>\n<ul data-start=\"2266\" data-end=\"2501\">\n<li data-start=\"2266\" data-end=\"2348\">\n<p data-start=\"2268\" data-end=\"2348\"><strong data-start=\"2268\" data-end=\"2290\">Fast liquidity<\/strong> for defence and the budget without waiting for reparations from Russia.<\/p>\n<\/li>\n<li data-start=\"2349\" data-end=\"2501\">\n<p data-start=\"2351\" data-end=\"2501\"><strong data-start=\"2351\" data-end=\"2380\">Projected funding<\/strong>Asset income comes in regularly, covering interest and principal.<\/p>\n<\/li>\n<\/ul>\n<hr data-start=\"2503\" data-end=\"2506\" \/>\n<h2 data-start=\"2508\" data-end=\"2529\">Risks and discussions<\/h2>\n<ul data-start=\"2530\" data-end=\"2820\">\n<li data-start=\"2530\" data-end=\"2664\">\n<p data-start=\"2532\" data-end=\"2664\"><strong data-start=\"2532\" data-end=\"2555\">Legal appeals<\/strong> from the Russian Federation and counterparties; the need for clear guarantees for creditors.<\/p>\n<\/li>\n<li data-start=\"2665\" data-end=\"2820\">\n<p data-start=\"2667\" data-end=\"2820\"><strong data-start=\"2667\" data-end=\"2691\">Political sensitivity<\/strong> in some EU countries regarding the impact on financial markets and the precedent for sovereign reserves.<\/p>\n<\/li>\n<\/ul>\n<hr data-start=\"2822\" data-end=\"2825\" \/>\n<h2 data-start=\"2827\" data-end=\"2837\">What's next<\/h2>\n<p data-start=\"2838\" data-end=\"3108\">London and the G7\/EU partners are working on the expansion of the \u00abreparations loan\u00bb and the technical details (guarantees, SPVs, bond issue parameters). Ukraine will continue to receive funds under the already agreed lines, including the British loan.<\/p>\n<hr data-start=\"3110\" data-end=\"3113\" \/>\n<h3 data-start=\"3115\" data-end=\"3126\">Sources.<\/h3>\n<p data-start=\"3127\" data-end=\"3239\">UK Government; Reuters; Financial Times; Brookings analytical materials.<\/p>","protected":false},"excerpt":{"rendered":"<p>\u0411\u0440\u0438\u0442\u0430\u043d\u0456\u044f \u043f\u0440\u043e\u043f\u043e\u043d\u0443\u0454 \u043d\u0430\u0434\u0430\u0432\u0430\u0442\u0438 \u0423\u043a\u0440\u0430\u0457\u043d\u0456 \u043f\u043e\u0437\u0438\u043a\u0438 \u0437\u0430 \u0440\u0430\u0445\u0443\u043d\u043e\u043a \u0437\u0430\u043c\u043e\u0440\u043e\u0436\u0435\u043d\u0438\u0445 \u0430\u043a\u0442\u0438\u0432\u0456\u0432 \u0420\u0424 \u041b\u043e\u043d\u0434\u043e\u043d \u043f\u0440\u043e\u0441\u0443\u0432\u0430\u0454 \u0456\u0434\u0435\u044e \u0442\u0430\u043a \u0437\u0432\u0430\u043d\u043e\u0433\u043e \u00abreparations loan\u00bb \u2014 \u043f\u043e\u0437\u0438\u043a \u0434\u043b\u044f \u0423\u043a\u0440\u0430\u0457\u043d\u0438, \u0449\u043e \u0437\u0430\u0431\u0435\u0437\u043f\u0435\u0447\u0443\u044e\u0442\u044c\u0441\u044f \u0434\u043e\u0445\u043e\u0434\u0430\u043c\u0438 \u0432\u0456\u0434 \u0437\u0430\u043c\u043e\u0440\u043e\u0436\u0435\u043d\u0438\u0445 \u0440\u043e\u0441\u0456\u0439\u0441\u044c\u043a\u0438\u0445 \u0430\u043a\u0442\u0438\u0432\u0456\u0432, \u0431\u0435\u0437 \u043a\u043e\u043d\u0444\u0456\u0441\u043a\u0430\u0446\u0456\u0457 \u0441\u0430\u043c\u043e\u0433\u043e \u043a\u0430\u043f\u0456\u0442\u0430\u043b\u0443. \u041c\u0435\u0445\u0430\u043d\u0456\u0437\u043c \u0441\u043f\u0438\u0440\u0430\u0454\u0442\u044c\u0441\u044f \u043d\u0430 \u0440\u0456\u0448\u0435\u043d\u043d\u044f G7 \u043f\u0440\u043e ERA-\u043f\u043e\u0437\u0438\u043a\u0443 \u043d\u0430 $50 \u043c\u043b\u0440\u0434, \u044f\u043a\u0443 \u043c\u0430\u044e\u0442\u044c \u043e\u0431\u0441\u043b\u0443\u0433\u043e\u0432\u0443\u0432\u0430\u0442\u0438 \u0432\u0456\u0434\u0441\u043e\u0442\u043a\u0438\/\u043d\u0430\u0434\u043f\u0440\u0438\u0431\u0443\u0442\u043a\u0438 \u0437 \u0456\u043c\u043c\u043e\u0431\u0456\u043b\u0456\u0437\u043e\u0432\u0430\u043d\u0438\u0445 \u0430\u043a\u0442\u0438\u0432\u0456\u0432 \u0420\u0424. \u0411\u0440\u0438\u0442\u0430\u043d\u0456\u044f \u0432\u0436\u0435 \u043d\u0430\u0434\u0430\u043b\u0430 \u041a\u0438\u0454\u0432\u0443 \u00a32,26 [\u2026]<\/p>\n","protected":false},"author":207433346,"featured_media":396,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_title":"","rank_math_description":"","rank_math_focus_keyword":"","td_subtitle":"","subtitle":"","footnotes":""},"categories":[805617,805618],"tags":[],"class_list":{"0":"post-395","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-politics","8":"category-economics"},"_links":{"self":[{"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/posts\/395","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/users\/207433346"}],"replies":[{"embeddable":true,"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/comments?post=395"}],"version-history":[{"count":1,"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/posts\/395\/revisions"}],"predecessor-version":[{"id":397,"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/posts\/395\/revisions\/397"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/media\/396"}],"wp:attachment":[{"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/media?parent=395"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/categories?post=395"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ukrmedia.news\/en\/wp-json\/wp\/v2\/tags?post=395"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}