G7 to Use Frozen Russian Assets to Aid Ukraine

According to a draft statement seen by Reuters, finance ministers and financial officials from G7 countries said on Saturday, May 25, that they are exploring ways to use the income generated from frozen Russian assets to support Ukraine. The G7, consisting of seven industrial democracies, blocked approximately $300 billion of Russian assets shortly after Moscow's invasion of Ukraine on February 24, 2022. The draft statement reads: "We are making progress in our discussions on possible ways to make substantial profits from frozen Russian assets available to Ukraine." A source familiar with the group told Reuters that this statement will not undergo significant changes before the final version is released later on Saturday. The statement notes that the finance ministers and central bank governors of the G7 are reviewing options for transferring profits from frozen Russian assets to Ukraine during their meeting in 'Sestri Levante' in northern Italy, to present at the G7 leaders' summit scheduled for June 14. The statement says: "Under the legal framework of the G7 countries, Russian assets within our jurisdictions will remain frozen until Russia compensates for the damages it has inflicted on Ukraine." Janet Yellen, the U.S. Treasury Secretary, stated on Friday, May 24, at a press conference that she is seeking a 'comprehensive agreement' at the G7 finance ministers' and central bank governors' meeting to provide significant financial support to Ukraine from the income generated by approximately $300 billion of frozen Russian assets beyond 2025. Earlier in early April, she told Reuters that direct confiscation of Russian assets is justifiable and that they could be used as collateral for borrowing in the market to aid Ukraine. She stated: "Europeans have taken a very constructive step in this regard, which is that most of the Russian assets held in Belgium... have now been converted to cash, and the financial institution 'Euroclear' is utilizing those assets. The European Union has agreed to separate this profit and essentially adopt a process that allows this income to be transferred to Ukraine." Two U.S. senators called for addressing the misuse of cryptocurrencies by the Iranian and Russian governments to circumvent sanctions. Russia threatened the West over the potential confiscation of its assets. The U.S. Treasury Secretary called for creating a 'wall of opposition' from the G7 against China's industrial policies.