I didn't understand from the article, who's the lander? It sounds like a huge dept trap, am I wrong?
this post was submitted on 27 Oct 2024
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The loan would be repaid entirely using the windfall profits generated by more than $250 billion of Russian assets that were immobilized across Western countries after Moscow’s invasion of Ukraine in February 2022.
Washington announced on Wednesday that it would contribute $20 billion to the loan during December, in a bid to shield its contribution from the fallout of the U.S. election. Donald Trump has previously questioned Washington's support to Ukraine should he return to the While House.
The agreement comes after the U.S. previously said that it wouldn’t be able to give a substantial amount unless the EU changed its rules governing sanctions.
The EU, which is holding most of the frozen funds, pledged to give up to €35 billion to Ukraine. In the end, the bloc is expected to also allocate $20 billion. The remaining $10 billion will be split among the U.K., Canada and Japan.
So the lenders are the countries. The debt is paid back using the profits from frozen Russian assets. So if things can go back to normal with Russia at some point, the assets can still be unfrozen and "given back".
At the end of the day this helps Ukraine secure funding, but also allows the lending countries to profit from the interest incurred. I have no idea how the legal rules are for handling the profits from frozen assets. But this is certainly a way to claim "moral legality" in taking some of the profits.
Now whether this is mostly about helping Ukraine or about skimming the profits from frozen assets depends on the interest rate.
The frozen assets will be given back AFTER the war reparations costs have been assessed and paid in full by Russia... So they won’t see them before a long time...
So brave of these people to profit from this war. \s