G7 finance ministers discuss use of frozen Russian assets for Ukrainian aid
Date
5/26/2024 4:00:24 AM
(MENAFN) In a draft statement reviewed by Reuters, G7 finance ministers are poised to announce their intention to explore ways to utilize the expected returns from frozen Russian assets to support Ukraine. This announcement is anticipated on Saturday, reflecting ongoing discussions among the ministers. Following Russia's invasion of Ukraine in February 2022, the G7 and its allies froze approximately USD300 billion in Russian assets. The draft statement reveals progress in deliberations on how to potentially redirect extraordinary profits from these frozen sovereign assets to benefit Ukraine.
For several weeks, G7 negotiators have been meticulously examining the optimal methods to leverage these assets, which predominantly consist of major currencies and government bonds housed in European-based deposits. The United States has been particularly proactive, urging its G7 counterparts—Japan, Germany, France, Britain, Italy, and Canada—to endorse a loan that could provide Ukraine with up to USD50 billion in the near term. However, the draft statement's careful wording, devoid of specific figures or detailed plans, indicates that numerous legal and technical challenges remain unresolved before any loan can be formalized.
According to a G7 source, the draft is not expected to undergo significant changes before the final statement is issued later on Saturday. The ministers' meeting in Stresa, northern Italy, will include Ukrainian Finance Minister Serhiy Marchenko, whose country continues to face Russian offensives in its northern and eastern regions more than two years into the conflict.
The draft statement highlights the group's commitment to presenting viable financial support options for Ukraine to G7 leaders at an upcoming summit in mid-June. It underscores that, in accordance with their legal systems, Russian sovereign assets under G7 jurisdiction will remain frozen until Russia compensates Ukraine for the damages inflicted during the war. This ongoing dialogue and the draft's cautious language reflect the complexity and sensitivity surrounding the issue, emphasizing the G7's strategic approach to aiding Ukraine while navigating the intricate legalities of asset utilization.
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