(MENAFN) As discussions continue among G7 countries regarding the potential utilization of frozen Russian assets to support Ukraine, a senior United States Treasury official has revealed that all options remain on the table. Reuters reports that approximately USD300 billion of Russian central bank assets have been blocked by Washington and its allies in response to Moscow's military actions against Kiev in February 2022, with a significant portion held in the European Union.
Despite the considerable sum at stake, the fate of these frozen assets has been a subject of debate, particularly concerning their potential use to aid Ukraine. While the United States has asserted that international law permits the confiscation of these funds, Germany and France have expressed reservations, citing concerns over setting a precedent.
The upcoming G7 foreign ministers' meeting in Capri, Italy, is expected to delve into discussions surrounding the allocation of these assets to assist Ukraine. According to an unnamed Treasury official, Western nations will explore various avenues for utilizing the funds, although specifics on the preferred option remain undisclosed.
However, the official cautioned against expecting significant progress during this week's discussions, noting that the final decision rests with the leaders of the G7 countries.
Additionally, it was emphasized that even if the decision is made to seize the Russian assets, Ukraine may not have the immediate capacity to absorb the entire sum at once.
The ongoing deliberations underscore the complexities and geopolitical implications surrounding the issue of frozen Russian assets and their potential role in supporting Ukraine amidst ongoing conflict. As G7 leaders navigate this delicate diplomatic terrain, the outcome of these discussions holds significant implications for both Ukraine's future and broader international relations.
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