G7 close to agreement on Russian assets to aid Ukraine, media reports

G7 finance ministers are expected to agree on a broad plan to use interest from frozen Russian assets for Ukraine on Saturday 25 May in preparation for a potential agreement among the G7 state leaders next month.

Source: European Pravda, citing Euractiv

Ukrainian Finance Minister Serhii Marchenko is set to participate in Saturday's G7 meeting in Stresa.

Any detailed agreement will have to be approved by G7 leaders at the Puglia meeting next month, but observers say that a deal "in principle" could be reached on 25 May.

Quote: "We need to reach a declaration of principle that marks the overall agreement of the G7 countries to use revenues from Russian assets to finance Ukraine," said French Finance Minister Bruno Le Maire.

He said that ministers aim to "reach a political agreement in principle, not a turnkey solution".

The European Union’s economy commissioner, Paolo Gentiloni said that negotiations are showing "positive convergence" on the idea of using profits from frozen Russian assets.

Although there are "many details yet to be clarified," Gentiloni said discussions "may lead to an agreement" at the G7 summit in Puglia on 13-15 June.

Italian Finance Minister Giancarlo Giorgetti also stated that he and his counterparts are considering "the basis for a solution for the mid-June summit".

This week, the EU officially approved a plan to use interest from frozen Russian assets, which, according to estimates, could bring up to three billion euros per year to Ukraine.

However, the United States asserts that G7 countries could go further, with US Treasury Secretary Janet Yellen urging ministers to consider "more ambitious options".

The US proposal involves creating a US$50 billion credit line for Ukraine, backed by future interest earned from frozen Russian assets.

While this proposal would provide significant support to Ukraine, it has raised questions, particularly regarding who would issue the credit, how risks would be distributed among the US and other G7 countries, and how interest rates might change.

Background:

• In February, the United States argued that G7 countries should fully seize frozen assets, but later abandoned this idea due to concerns from allies that it could set a dangerous legal precedent and prompt retaliatory measures from Russia.
• Earlier, Minister of Foreign Affairs Dmytro Kuleba stated that Ukraine insists on the confiscation and transfer to Ukraine of all frozen assets of the Russian Federation held in the West.

Support UP or become our patron!