America utilizes Trump warning to ensure assistance to Ukraine
Date
5/23/2024 4:13:54 AM
(MENAFN) According to a report by the Financial Times, the White House is strategically wielding the specter of a potential Donald trump victory in the upcoming United States presidential election to rally support within the G7 for leveraging Russian assets to provide aid to Ukraine. This move comes amidst ongoing tensions between Western nations and Russia following Moscow's military incursion into Ukraine in February 2022, which led to the freezing of approximately USD300 billion in Russian sovereign assets by Western nations.
Initially, Washington advocated for the outright confiscation of these frozen assets to directly finance Ukrainian needs. However, objections from several United States allies arose, citing concerns over the potential repercussions on Western financial credibility. Subsequently, the United States has pivoted towards a more nuanced approach, proposing that future profits from immobilized Russian funds be utilized as collateral for a multibillion-dollar loan to Ukraine.
While the United Kingdom and Canada have thrown their support behind this revised proposal, the report indicates that France, Germany, Italy, and Japan, among other G7 members, remain hesitant. Notably, the majority of the frozen Russian assets are situated within the jurisdiction of the European Union.
Unnamed Western officials disclosed to the Financial Times that the United States is effectively leveraging the fear of a Trump presidency, wherein securing further American aid for Kiev would ostensibly become more challenging, to sway skeptical G7 members towards endorsing the plan. If approved during an upcoming G7 leaders’ meeting slated for June, the proposed funding mechanism aims to be "Trump-proof," with an estimated USD50 billion earmarked for Ukrainian assistance, potentially as early as this summer.
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