Finance ministers from the Group of Seven major democracies meeting in Italy this week are set to discuss a European Union plan to use the income from frozen Russian assets to help Ukraine’s war effort.
This Thursday’s meeting of finance ministers in the northern Italian town of Stresa is set to do the groundwork for enabling G7 heads of government to reach a final decision on using frozen Russian funds at a summit in southern Italy in June.
The G7 froze around €270 billion worth of financial assets soon after Moscow’s attack on its neighbour in February 2022.
Since then, the European Union and other G7 countries have debated whether and how to use the funds to help Ukraine – specifically a €30 billion loan to Kyiv.
The G7 comprises the United States, Japan, Germany, France, Britain, Italy and Canada.
The United States has proposed seizing the assets in their entirety, but Europe has balked, citing risks to the euro currency and potential legal repercussions.
The G7 is, however, expected to support the EU’s line to use the extraordinary revenues from the frozen Russian assets to the benefit of Ukraine.
Question of legality
The talks will be focused on using income from the assets – not the assets themselves – and any decision must have the backing of the EU and a solid legal basis.
The frozen assets are immobilised and can’t be accessed by Moscow – but they still belong to Russia.
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