EU Proposes New Sanction Renewal Options to Secure $50B Loan for Ukraine

The European Commission has presented three new options to EU ambassadors for extending the sanctions renewal period on Russia's central bank assets to secure a $50 billion G7 loan for Ukraine. These measures aim to ensure the sanctions regime remains in place, facilitating financial support for Ukraine amidst Russia's invasion.

The European Commission has introduced three new options to EU ambassadors, aimed at extending the sanctions renewal period on Russia's central bank assets. This move is crucial for securing a $50 billion loan from the G7 to assist Ukraine, diplomats revealed on Friday.

During a meeting in June, the G7 and EU leaders agreed to use interest from frozen Russian assets to back this substantial loan, aiding Ukraine in its defense against Russia's full-scale invasion. G7 members hold around $300 billion in these assets, with a significant portion managed by Belgium's securities depository, Euroclear.

The proposed options include a five-year asset freeze with an annual review and a qualified majority needed to unfreeze assets, a 36-month renewal requiring unanimous consent, and a uniform 36-month renewal period for all Russia-related sanctions. A Commission spokesperson refrained from commenting on these details.

(With inputs from agencies.)