G7 unsuccessful to finalize plots for using Russian assets
Date
5/27/2024 9:02:27 AM
(MENAFN) During a two-day meeting in Stresa, hosted by Italy as part of its G7 presidency, finance ministers failed to reach a consensus on how to utilize the revenue generated from frozen Russian central bank assets to support Ukraine, Italian Economy Minister Giancarlo Giorgetti announced on Saturday.
While progress was made on the issue of Russian assets, Giorgetti stated that significant technical and legal challenges still need to be addressed before finalizing the process. He emphasized that the aim is to arrive at a Politically desirable solution that is legally sound, which requires careful consideration and time.
The decision-making process is expected to continue, with final decisions likely to be made at the June G7 leaders’ summit in Puglia. Since the onset of the conflict in Ukraine in 2022, Western nations have frozen approximately USD300 billion in assets belonging to Russia’s central bank, with a significant portion held in the European Union clearing house Euroclear.
While the United States has shown eagerness to seize the assets outright, the G7 is reportedly leaning towards alternative approaches. Concerns raised by European members regarding potential damage to financial credibility and deterrence for other countries to keep assets in the European Union have prompted a focus on tapping the profits generated by the frozen assets and determining their use.
MENAFN27052024000045015687ID1108261644
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.