MNI BRIEF: PBOC To Borrow CGBs In Response To Market Situation

MNI BRIEF: Caixin June Manufacturing PMI Hits Three-year High

MNI BRIEF: Japan Q1 GDP Revised Lower On Public Investment

MNI: PBOC Net Drains CNY48 Bln Via OMO Mon; Rates Unchanged

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS MON

MNI: PBOC Sets Yuan Parity Lower At 7.1265 Mon; -0.32% Y/Y

Nominal Wage Growth Moderates In April, But Real Wages Remain Positive

MNI Projects 2.2-2.3% Y/Y National CPI, Core CPI Around 2.9%

UK JUNE MANUFACTURING PMI 50.9 (51.4 FLASH; 51.2 MAY)

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

US Off-G7 Backs Use Of Frozen Russian Asset Interest To Fund Ukraine

UKRAINE
Metals bulletEM BulletHomepagemarkets-real-timePolitical RiskCommoditiesPolitical Risk BulletEnergy BulletsBulletEmerging Market NewsPolitical Market News

Wires reporting comments from an unnamed senior US official speaking at the G7 summit regarding the use of frozen Russian assets to support Ukraine. Says that the G7 has reached an agreement on using the interest from the frozen Russian assets to provide a USD50bn loan to Ukraine. Official: 'There will be multiple disbursement channels for funds...Disbursements will begin in 2024 [and] need to be at a pace the Ukraine can absorb and direct to its highest priorities'.

  • Says that the 'next step is to enshrine the committment with other EU members and write contracts...European leaders have committed to seek approval from other EU members to keep Russian assets frozen'. Claims that the assets will remain 'untouched for now', but that the West has 'full optionality' to seize the principal later if there is political will. Official: 'Ukraine will be able to use the funds to support its budget, military, reconstruction, and for humanitarian purposes.'
  • The subject of whether or how to use the ~USD290bn in frozen Russian assets (primarily held by Belgium's Euroclear) has been the topic of intense discussion for several months. The US has pushed a hard line in utilising the funds themselves. However, it appears the more cautious Europeans have won through, just using the windfall interest earned on the assets to date as collateral for the loans.
  • European figures, notably ECB Pres. Christine Lagarde, have warned the impact using the funds themselves but seem to have becomemore relaxedabout using the windfall interest gained to back Kyiv.
252 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Wires reporting comments from an unnamed senior US official speaking at the G7 summit regarding the use of frozen Russian assets to support Ukraine. Says that the G7 has reached an agreement on using the interest from the frozen Russian assets to provide a USD50bn loan to Ukraine. Official: 'There will be multiple disbursement channels for funds...Disbursements will begin in 2024 [and] need to be at a pace the Ukraine can absorb and direct to its highest priorities'.

  • Says that the 'next step is to enshrine the committment with other EU members and write contracts...European leaders have committed to seek approval from other EU members to keep Russian assets frozen'. Claims that the assets will remain 'untouched for now', but that the West has 'full optionality' to seize the principal later if there is political will. Official: 'Ukraine will be able to use the funds to support its budget, military, reconstruction, and for humanitarian purposes.'
  • The subject of whether or how to use the ~USD290bn in frozen Russian assets (primarily held by Belgium's Euroclear) has been the topic of intense discussion for several months. The US has pushed a hard line in utilising the funds themselves. However, it appears the more cautious Europeans have won through, just using the windfall interest earned on the assets to date as collateral for the loans.
  • European figures, notably ECB Pres. Christine Lagarde, have warned the impact using the funds themselves but seem to have becomemore relaxedabout using the windfall interest gained to back Kyiv.