RT reported that Ukrainian Prime Minister Denis Shmigal announced the information on December 30. This move immediately met with strong criticism from Russia, when Kremlin spokesman Dmitry Peskov accused the West of "looting" Russian assets and warned that the case would be brought to court.
The $15 billion is part of a $20 billion aid package pledged by the US, part of a $50 billion G7 loan to Ukraine. According to Mr. Shmigal, the agreement was signed between the Ukrainian Ministry of Finance and the World Bank through the "Peace in Ukraine" initiative.
The G7 group, which includes the US, Canada, Japan, the UK, France, Germany and Italy, has pledged $50 billion in loans starting in June 2022, using interest from frozen Russian assets as collateral. Of the roughly $300 billion in frozen Russian assets, $213 billion is held at the Euroclear clearinghouse in Brussels, Belgium.
The assets have generated billions of dollars in profits since they were frozen in February 2022. In July, Euroclear transferred 1.55 billion euros ($1.63 billion) in profits to Ukraine.
Russia has vehemently protested the seizure of its assets. Spokesman Peskov called it “robbery” and said Moscow would use all legal means to fight it. Last week, Peskov stressed that the transfer of the first $1 billion of frozen Russian assets to Ukraine was “unacceptable.”
Russian Finance Minister Anton Siluanov recently said that Moscow would respond by using profits from Western assets frozen in Russia. "We have also frozen the assets of Western investors and will use the profits from these assets," Siluanov said.
The decision to use frozen Russian assets has sparked controversy within the G7, with European countries such as Germany, France and Italy concerned that the move could undermine financial market stability and lead to serious legal problems. The International Monetary Fund (IMF) has warned that seizing assets without a clear legal framework could undermine global confidence in the Western financial system.
The legal battle and controversy surrounding the decision are increasing tensions between Russia and the West, while Ukraine continues to receive financial support to sustain its protracted war.
