The topics on the G7 table in Borgo Egnazia, Puglia, are many and very hot. The great event, which sees Prime Minister Giorgia Meloni do the “honours”, began today, Thursday 13 June.
There is already an air of first clashes but, at the same time, of important agreements. A common understanding appears to have been found regarding Ukraine. A general agreement for general support for Zelensky, following the line drawn by Joe Biden: aid to the Ukrainian population and army through Russian funds.
Loan to Ukraine
Ukrainian President Volodymyr Zelensky certainly couldn’t have been welcomed in a better way at the G7 in Puglia chaired by Prime Minister Giorgia Meloni. Agreement on Russian funds frozen in Belgium has been reached. There is no shortage of unknowns but, if everything goes according to plan, by the end of 2024 Ukraine should receive more checks from the seven summit states. All for a sum that could exceed quota 60 billion euros.
It is important to look at the terms of this agreement, which is crucial in the European geopolitical balance. I am more than 200 Russian billions seized they extra profits relatives will act as guarantee. In fact they will repay what is a collective loan divided as follows, according to the Corriere della Sera:
- United States: 50 billion;
- Canada: 5 billion;
- Japan: 2 billion (aimed at supporting Kiev’s budget and not armaments, in compliance with the Japanese Constitution);
- Italy: postponement to the next European Council with full powers to define the contribution;
- France: postponement to the next European Council with full powers to define the contribution;
- Germany: postponement to the next European Council with full powers to define the contribution;
- Kingdom United: contribution through own financial instrument, for a total amount yet to be agreed.
The crux of Russian funds
One of the crucial steps to be taken during the G7 2024 in Puglia certainly concerns the taxation of profits relating to Russian funds. After the surrender of Belgium, frozen assets will generate 5 billion per year.
It was decided to indicate a downward figure in the conclusions of the summit. For this reason one gets the impression that the reports are different. On the one hand there are those who give greater prominence to the sum of 50 billion, approximately what will be reported in the conclusions. On the other hand, however, those who underline that the actual sum that Kiev will receive will be much higher and close to 60 billion.
To have more certainty on the matter, however, we will have to wait until next G7 of financial ministers. They have the task of fitting the signed agreements into a precise financial framework.
Russia’s reaction
President Joe Biden is firm in his geopolitical vision. Despite numerous internal conflicts and serious uncertainty for the next US elections, POTUS has no doubts: new sanctions against Russia, in order to hit the Moscow Stock Exchange. Putin’s reaction was immediate: la Moscow Stock Exchangein a historic decision, decided to suspend transactions in dollars and euros.
Also space for a meeting with Zelensky. A real summit within the summit to sign a security agreement. Ukraine will be guaranteed more weapons and a warning is addressed to China: stop Xi Jinping’s support for Putin.
In the meantime, the latter certainly doesn’t stand by and watch. From Moscow come the words of Deputy Foreign Minister Alexander Grushko: “What NATO is doing today prepares the alliance for a possible military clash with Russia. The role of nuclear weapons in the Alliance’s military planning is growing. There is talk of their deployment in Poland and other European countries.”
