G7 considers using $300 billion of frozen russian assets as collateral for credits to Ukraine

G7 countries are discussing the use of frozen russian assets worth almost $300 billion as collateral for loans to Ukraine.

This was announced by the Executive Vice President of the European Commission Valdis Dombrovskis.

He emphasized that the G7 is currently considering various options and discussions are ongoing. 

Dombrovskis expressed hope that the European Union would approve a separate procedure in the coming months to use the profits or interest from frozen russian assets to help Ukraine. 

The Group of Seven countries are "firmly committed" to helping Ukraine meet its urgent short-term financing needs, including using interest from frozen assets. 

In its statement, the G7 noted that it "will continue to work on all possible ways in which russia's frozen sovereign assets can be used to support Ukraine," but no specific plan for use was mentioned. 

According to Dombrovskis, the EU procedure is likely to be in the form of a pledge of russian assets instead of a full seizure. 

"We are discussing a number of different options. One of them is confiscation, and the other is pledging or even using the excess profits or interest from these assets to finance the loan," said US Deputy Treasury Secretary Wally Adeyemo. 

Source: Reuters