West plans to turn heat up on Russia: Frozen assets eyed for Ukraine amid financial struggle
The "Financial Times" discloses this information in its coverage. According to the publication, the consideration of the 300 billion-dollar worth of frozen Russian assets was a chief discussion point among the finance ministers of G7 countries and their deputies.
1:18 PM EST, December 28, 2023
Conflict in Ukraine: The West eyes Russia's frozen assets
The newspaper discloses that the US proposed that the G7 working groups should explore methods to claim the frozen Russian assets. This is in a bid to formulate a potential plan for these assets ahead of the second anniversary of the Ukraine conflict.
So far, proposals regarding the usage of Russian assets have been confined to the seizure of revenues produced by Russian state assets. Now, however, there's a distinct push to use the assets themselves. The negotiation table is already presenting initial solutions, ranging from direct confiscation to utilizing them as loan collaterals.
While Washington hasn't publicly backed the takeover of Russian assets, it was the US that presented a document for discussion among the G7. They also argue that the seizure of Moscow's frozen assets could be justified as a "remedial measure" designed to halt Russia's aggression.
Europe proceeds with more caution than the US
The necessity to support Ukraine is becoming especially pressing due to the political paralysis that both the US and the European Union are contending with. In the United States, conservative Republicans object to further financial aid for Ukraine. In Europe, Hungary, known for its pro-Kremlin stance, poses a hurdle. Nevertheless, the EU is devising a plan to support Kiev despite Budapest's resistance.
The European Union, however, is more cautious than the United States when dealing with Russian assets. Europe, where the majority of the frozen funds are held, is anxious about potential implications for continental financial stability and possible reprisals from Russia. Moscow has already threatened to sever its diplomatic ties with the US in response to the assets' seizure.
The possible violation of Russian assets is further meant to communicate a clear message to Russia. Through this action, the Western world aims to reiterate that it has not forgotten about Ukraine and remains committed to offering economic and military support, the "Financial Times" reports.
