The plan involves using profits from frozen Russian assets. Leaders of the G-7 countries will meet in Italy in June to discuss this issue.
The United States is negotiating with close partners to lead a group of allies that will provide $50 billion in aid to Ukraine, with significant costs to be repaid from windfalls from frozen Russian sovereign assets – and on which interest accrues – mainly in Europe, Bloomberg writes.
The plan is being discussed among the G-7 countries, with the United States pushing for an agreement when G-7 leaders meet in Italy in June, according to people familiar with the proposal. Discussions on the topic have been complex and it could take months to reach an agreement, they said.
US Treasury Secretary Janet Yellen confirmed to Bloomberg that such discussions are underway.
“Ideally, we would like the entire G7 to participate in this, not just the United States,” she said.
The publication notes that this plan indicates strong support from Washington after Congress in April approved $61 billion in aid to Kyiv, which had been delayed for months due to partisan disputes.
We also note that the Financial Times recently reported that the G7 ” stopped discussing the confiscation of frozen assets of the Russian Federation. The G7 fears that a complete confiscation of assets would violate international law and set a precedent.