Efforts to Utilize Frozen Russian Assets to Support Ukraine
According to the report by the Associated Press, citing two unnamed American officials.
Participants in the Ukraine support movement are looking for ways to effectively utilize frozen Russian assets to support Kyiv’s military efforts. This issue is becoming increasingly important amidst ongoing Russian aggressive behavior and unstable financial situation in Ukraine.
Discussion at G7 Meeting in Italy
The most important topic at the meeting of finance officials from the Group of Seven wealthy democracies, taking place from Thursday to Saturday in Stresa, Italy, is what to do with the reserves of the Russian central bank that were frozen after the invasion of Ukraine.
According to the AP, Ukraine and its supporters advocate for the confiscation of $260 billion worth of Russian assets, but this is complicated by legal and financial obstacles from European officials. The majority of frozen assets are located in Europe.
A European plan to use only interest from Russian funds would provide approximately $2.5-3 billion annually, which is significantly insufficient to cover Ukraine’s needs even for a month.
Proposals for Immediate Financial Assistance
According to the AP, American officials and economists propose using this minimal amount to create a significantly larger volume through bonds that will be repaid from future interest income to provide immediate financial assistance to Ukraine. On Saturday, ministers will meet with Ukrainian Finance Minister Serhiy Marchenko.
«Securing Ukraine’s position in the medium and long term requires unlocking the value of frozen Russian sovereign assets,» said US Treasury Secretary Janet Yellen at a press conference on Thursday in Stresa. «We support the EU decision to use unexpected profits from these assets, but we must also continue our collective work on more ambitious options.»
