G7 Finance Ministers Make Progress on Using Frozen Russian Assets to Aid Ukraine

G7 Finance Ministers Make Progress on Using Frozen Russian Assets to Aid Ukraine

In a two-day meeting in Stresa, northern Italy, G7 finance ministers discussed creative solutions to use profits from frozen Russian assets to support Ukraine in its ongoing conflict with Russia. The ministers expressed optimism and cited “progress” in finding ways to bring forward the profits for the benefit of Ukraine while remaining consistent with international law and legal systems.

Italian Finance Minister Giancarlo Giorgetti stated that a concrete proposal will be presented to G7 leaders at a summit in Puglia, southern Italy, in June. Despite acknowledging the technical and legal challenges, Giorgetti emphasized the determination to find a solution.

The G7 ministers also reiterated their commitment to keeping Russian assets frozen until Russia compensates Ukraine for the damage caused by the conflict. Additionally, they pledged to impose further financial and economic sanctions, including targeting Russia’s energy revenue and military capabilities.

The United States proposed a $50 billion loan facility backed by future interest on the €300 billion of Russian central bank assets frozen by the G7 and EU. This proposal was seen as a flexible and pragmatic plan that addressed legal and regulatory concerns within the EU.

While no concrete deal was reached at the summit, Ukrainian Finance Minister Sergii Marchenko expressed optimism about the progress made and hoped for a decision at the upcoming G7 leadership summit in June.

In addition to discussions on Ukraine, the G7 ministers also raised concerns about China’s trade policies and industrial overcapacity. They warned of potential measures to counteract these policies and ensure a level playing field in line with World Trade Organization principles.

Overall, the G7 finance ministers made strides in finding ways to support Ukraine and address global economic challenges posed by Russia and China. The upcoming G7 leadership summit in June will provide an opportunity to further solidify these efforts and decisions.