It became known that the mechanism of using frozen assets for the benefit of Ukraine will be discussed during the next G7 leaders meeting. This was announced by the White House.
US President, Joe Biden plans to participate in the G7 leaders summit, which will take place in Apulia, Italy, June 13-14. Important global issues will be discussed during the meeting, among which crucial support for Ukraine from the countries of the “Big seven” will be key. As noted in the White House statement on June 4, the leaders plan to intensify efforts to use frozen Russian assets to aid Ukraine, while also reinforcing sanctions against Russia and those who supports its military efforts.
In addition, issues related to strengthening global economic security, supporting developing countries, enhancing food security, and financing healthcare will be discussed.
CONTEXT
- Western countries have frozen around $300 billion of assets from the Russian Central Bank. Specifically, approximately $190 billion are located in Belgium, where the Euroclear depository is located. There is no exact information about the amount of frozen Russian assets in each country, but according to the President of the European Central Bank, Christine Lagarde, $6 billion is frozen in the USA.
- The G7 countries have been discussing for over a year whether it is possible to confiscate Russian assets without undermining trust in the international financial system. Some EU members oppose this step, fearing lawsuits from Russia. The EU suggests transferring only the profits from these assets to Ukraine. For example, Ukrainian Prime Minister Denis Shmyhal estimated these profits at €5-8 billion for this year. The UK proposed “lending” Ukraine all frozen Russian assets on condition of return, if Russia pays reparations.
- Ukraine’s President, Volodymyr Zelensky, has called on Western countries to transfer all of Russia’s frozen assets to Ukraine. He emphasized that this is a historic opportunity to make the aggressor pay for its terror.
- It is expected that a plan for the use of frozen Russian assets will be developed by the G7 leaders’ summit in June. Most likely, the discussion will be about the use of the revenues from assets, not about their full confiscation.
This summit could be a significant milestone in international efforts to support Ukraine and increase sanction pressure on Russia. This is especially important in the context of the ongoing war and global instability.
