The US has suggested to its Group of Seven (G7) allies the creation of a special purpose vehicle (SPV) to issue at least $50 billion of bonds, backed by profits from frozen Russian sovereign assets, to support Ukraine, Bloomberg reported, citing sources familiar with the plan. The proposal aims to pool the $280 billion of Russian central bank assets frozen by G7 countries and the EU, using the profits to back the so-called freedom bonds.
More than two-thirds of Russia’s frozen assets are in the EU, generating around $3.6 billion in net profits annually. The proceeds from the proposed bond offering would nearly match the $60 billion of US aid currently stalled in Congress. The initiative comes at a critical time, as Western allies face challenges in funding Kyiv amidst artillery shortages and Russian advances in the east.
According to Bloomberg, the proposal aims to pool the $280 billion of Russian central bank assets frozen by G7…
