Finance officials from the Group of Seven (G7) wealthy democracies have announced progress on a proposal by the United States to generate more funds for Ukraine using Russian assets frozen in their respective countries.
“We are making progress in our discussions on potential avenues to bring forward the extraordinary profits stemming from immobilized Russian sovereign assets to the benefit of Ukraine,” stated a draft communique, without elaborating on specifics.
Progress on the proposal was made during a G7 meeting with finance ministers and central bank governors in Stresa in northern Italy. However, the ultimate decision on how to utilize the assets located in each respective nation will be made by their leaders, including U.S. President Joe Biden, at their annual summit in Fasano, southern Italy, in June.
Ukrainian Finance Minister Serhiy Marchenko joined the finance ministers and central bank heads at their concluding session on Saturday, May 25.
“I am satisfied with the progress,” he told journalists afterward, noting that the G7 ministers “are working very hard to find a reliable construction for Ukraine.”
While the U.S. Congress has passed legislation allowing the Biden administration to seize approximately $5 billion in Russian assets located in the U.S., European countries have significantly more influence, as most of the $260 billion Russian central bank assets frozen globally after the beginning of the special military operation in Ukraine on Feb. 24, 2022, are held in their jurisdictions.
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European officials, citing legal concerns, have hesitated to outright confiscate the money and hand it to Ukraine as compensation for the destruction caused by Russia. Instead, they plan to use the interest accumulating on the assets, which amounts to around $3 billion a year – about one month’s financing needs for the Ukrainian government.
U.S. Treasury Secretary Janet Yellen is advocating for borrowing against the future interest income from the frozen assets, potentially providing Ukraine with as much as $50 billion immediately. However, this proposal has raised concerns among European members about legal complexities and the risk of Russian retaliation against Western companies and individuals still holding assets in Russia or against the Euroclear securities depository in Belgium, where the bulk of the funds are held. (Related: Yellen wants frozen Russian assets to be given to Ukraine – a move that could drive away nations from Western banks.)
Kremlin to seize U.S. assets in Russia in retaliation
In response, the Kremlin has issued a decree from President Vladimir Putin on Thursday, May 23, allowing the confiscation of U.S. companies' and individuals' assets as compensation for any Russian assets seized in the United States.
The decree allows Russia to confiscate property, real estate, securities and stakes in Russian companies owned by American companies and citizens to compensate for Russian losses from seizures by Washington.
Russian state media claims the Kremlin has identified around $290 billion in U.S. and allied assets in Russia that could be targeted, though this hasn't been independently verified. Russia has already seized assets from several Western companies and millions of dollars held by European banks.
Watch this Feb. 23 episode of "Brighteon Broadcast News" as host Mike Adams, the Health Ranger, warns about how the G7's plan to seize frozen Russian assets will end up destroying the American dollar.
This video is from the Health Ranger Report channel on Brighteon.com.
More related stories:
EU to give Ukraine weapons and aid using profits from frozen (stolen) Russian assets.
Schizophrenic world order: The West is willing to destroy its financial system to punish Russia.
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