Time: 2024-07-15
After months of discussions , G-7 nations decided in mid - June to use the future proceeds of Russian assets frozen in the West to provide a 0 billion loan to Ukraine . Western companies operating in Russia may face the burden of funding Ukraine due to this decision . Companies that remained in Russia after the 2022 invasion of Ukraine find themselves in a challenging situation . Some have pledged to leave but faced bureaucratic obstacles , leading to asset seizures . European Union and U.S. companies have pulled out around 40 percent of their Russian assets , with foreign assets worth 94 billion still in Russia , 2 billion owned by U.S. companies , and 0 billion by European companies . The corporate exodus of around 1,000 foreign companies from Russia since the invasion has cost them more than 07 billion.
In response to hostile actions by the United States and other states , Russia placed the Russian subsidiary of Italian water heating firm Ariston and German appliance - maker BSH Hausgerte under temporary external management . The assets would remain immobilized until Moscow ended its war against Ukraine . The financing for Ukraine is expected to reach Kyiv by the end of the year , with contributions from all G-7 states . The proceeds of impounded Russian funds , approximately 00 billion , will back the loan , with most assets blocked in the EU . European companies are more vulnerable to retaliation due to larger holdings of Russian assets and the larger presence of European businesses in Russia . Western sanctions and Russia 's regulatory framework have made it difficult for companies to exit and repatriate profits.
In Russia , the defence sector has seen a surge in hiring amid the war economy . The decision to invade Ukraine has led to a rebirth of manufacturing , positively affecting people 's quality of life but also resulting in casualties . State orders to arm , fuel , feed , and clothe the army have injected vast sums of money into the economy , leading to a forecasted 3 percent growth . Rust - belt regions in central Russia , such as Chuvashia , have experienced significant growth in manufacturing , with factories producing more to supply the war effort . The defence sector has rushed to hire staff , pushing up wages and decreasing unemployment rates.
Although inflation has impacted salary growth , the purchasing power of workers has increased . The political impact of the wartime boost on the Russian population is significant , as support for the war has been bolstered by economic benefits . Families of men sent to the front line benefit from high salaries and compensation payouts . While the impact of defence spending in regions like Chuvashia may be temporary , workers are making the most of the wartime opportunities . The long - term sustainability of the war economy in Russia remains uncertain.
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