G7 countries discuss using frozen russian assets to finance Ukraine

The European Central Bank (ECB) fears that the use of these funds could undermine confidence in the euro on the international stage, but these risks could be mitigated if the US and Japan take similar action, the publication notes.

Politico sources reported that European countries called on all members of the group to coordinate their actions regarding these assets. However, the final statement does not contain a promise of joint action, noting only that the use of russian assets is one of the options under consideration.

G7 finance ministers said they were developing ‘a wide range of measures to finance Ukraine's needs,’ which could include ‘the coordinated use of all frozen russian assets in our jurisdictions to end the war.’

The EU plan envisages using around €140 billion of frozen russian assets in the form of an interest-free ‘reparation loan’ for Kyiv.

The White House insists on using part of russia's reserves frozen in the EU, but has not yet confirmed whether it will apply a similar mechanism to its $7 billion held in the US.

Japan is also cautious about the idea of providing a ‘reparation loan’ from its own frozen russian assets, but according to the publication's sources, its decision will depend on the actions of the US.

Source: NV, Politico