The US Treasury Secretary considers it “vital and urgent” to find a way to use the interests of Russian assets frozen in Western countries to help Ukraine, an issue that will be at the center of the G7 Finance meeting this week.
“It is vital and urgent that we collectively find a way to unlock the value of Russian sovereign assets tied up in our jurisdictions for the benefit of Ukraine,” Janet Yellen will say in Frankfurt, Germany, on Tuesday, according to excerpts of her speech. published this Monday. “This will be a key topic of conversation during this week’s G7 meetings,” added Joe Biden’s Minister of Economy and Finance.
G7 finance ministers, meeting starting Thursday in Stresa, Italy, will discuss a U.S. plan to provide Ukraine with up to $50 billion in loans secured by future profits generated by stranded Russian assets, the Financial reported Monday. Times. This Biden administration plan will serve as the basis for the G7 discussions, a source from the Italian Treasury confirmed to AFP. For Italy, which chairs the G7 this year, this proposal is an “interesting path to explore further,” according to this source.
Agreement “in principle” within the EU
Any decision, however, needs the support of the European Union, “must have a solid legal basis” and will not be announced until the G7 summit of heads of state and government in June, according to the same source. On June 8, the EU concluded an “in principle” agreement to seize the proceeds of Russian assets frozen in its 27 countries in order to arm Ukraine, a windfall that will represent between 2.5 and 3 billion euros a year in favor of kyiv.
However, according to the Financial Times, details of the plan have yet to be finalized, including who will issue the debt – the United States alone or the G7 countries through a special purpose entity – and who will provide the guarantee. Another outstanding issue is the distribution of risks and reimbursements in case future profits do not materialize, writes the business newspaper.
For Janet Yellen, it is “essential that we ensure that Ukraine has the support it needs to equip its military, finance essential services and rebuild in the medium and long term.” It should also call on G7 countries to “continue to fight Russia’s evasion of sanctions.”
Source: BFM TV
