Putin calls G7 deal on frozen Russian assets for Ukraine loan ‘theft’

Western countries have agreed to use interest on frozen Russian assets to give Ukraine a $50bn loan.

Russia’s President Vladimir Putin has denounced an agreement by Western countries to provide Ukraine with a loan package using frozen Russian assets and pledged retaliation.

Speaking at a meeting on Friday with officials from the Ministry of Foreign Affairs, Putin said leaders in the West were trying to come up with “some kind of legal basis” for the asset freezes, “but despite all the trickery, theft is still theft and will not go unpunished”.

He added that Moscow’s treatment was proof that “anyone” could be next and punished by an asset freeze.

Putin’s comments came after the Group of Seven (G7) members agreed at a summit in Italy on an outline deal for a $50bn loan package for Ukraine to help it acquire weapons and rebuild destroyed infrastructure using interest from Russian sovereign assets frozen after Putin sent his troops into the neighbouring country in February 2022.

The G7 comprises Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. The European Union also participates in all discussions.