• 17/06/2024 18:05

US proposal to use frozen Russian assets gains popularity among G7 – Reuters

The US proposal to use the proceeds from frozen Russian assets worth about $300 billion to help Ukraine instead of completely confiscating them is gaining popularity among member countries of the Group of Seven (G7). This was reported by Reuters with a link to two officials from the G7 countries.

US proposal to use frozen Russian assets is gaining popularity among the G7 — Reuters

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It is noted that the use of interest from Russia's frozen assets, which will amount to about $5 billion per year, is becoming one of the main options for overcoming differences between the United States and Europe ahead of the G7 leaders' summit, which will be held in Italy in June.

However, members The G7 are still arguing over certain “constraints” that could reduce expected revenues to $2.5-3 billion, one official said, citing Belgium's 25 percent tax rate, a “convenience fee” applied by depository Euroclear and a proposed reserve in case of litigation.

G7 finance ministers will return to the issue at a meeting in late May to develop a consensus proposal to present to the leaders of the Group's countries at the summit in June, sources told the publication.

“We feel an urgent need to achieve international consensus. Everyone recognizes that we need to do more,” the source said.

Another G7 official echoed this sentiment, emphasizing the need to secure long-term funding for Ukraine.

A senior US official said the approval Some $61 billion in congressional aid to Ukraine and a separate €50 billion package from the EU will support Kyiv, but it will face funding shortfalls in 2025 and 2026.

Washington continues to insist that all options , including the direct confiscation of Russian assets, are justified from the point of view of international law and should remain on the negotiating table, but the United States is seeking to reach consensus around an idea that could help Ukraine now, the interlocutor said.

The interest income proposal could become a real basis for reaching an agreement in June.


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