Mon. Jun 17th, 2024

G7 will discuss ways to use frozen assets of the Russian Federation to support Ukraine

Natasha Kumar By Natasha Kumar May23,2024

G7 will discuss ways to use frozen assets of the Russian Federation to support Ukraine

Illustrative photo from open sources< /p>

G7 finance chiefs meeting in Italy this week are seeking to find common ground on how to extract proceeds from frozen Russian assets to boost aid to Ukraine and counter China's export growth in key sectors of the economy .

This was reported by officials of the G7 member states, reports Reuters.

Finance ministers and central bank governors of the G7 countries – Great Britain, Germany, Italy, Canada, USA, France and Japan – will meet on Friday and Saturday in the city of Stresa, located on the shores of Lake Maggiore (northern Italy).

G7 representatives have been discussing for several weeks ways to use Russian financial assets worth about $300 billion, which were frozen after the start of the full-scale Russian invasion of Ukraine in February 2022.

The US insists it must find a way to use future earnings from these assets to secure the loan, which could reach $50 billion in the near term.

However, some officials from G7 countries, including the US, said that A number of legal and technical aspects need to be worked out and it is not expected that a detailed agreement will be reached at Stresa.

One source, speaking on condition of anonymity, said G7 ministers were trying to reach consensus on a plan that would give Ukraine enough funds to meet medium-term military and civilian needs and send a message to Russia that it cannot compete financially with Western powers.

The purpose of the ongoing discussions – present proposals to the heads of government of the G7 countries, who will meet in Puglia, southern Italy, from June 13 to 15.

Who will manage the loan – The World Bank or another organization, how it will be guaranteed, how future profits can be assessed and what will happen if a peace agreement is concluded with Russia – all these aspects remain to be clarified.

One EU diplomat said a final decision would take “weeks, if not months.”

The outlook for global trade will be another central concern topic in Stresa after the US last week announced higher tariffs on a range of Chinese goods, including electric vehicle batteries, computer chips and medical products.

US Treasury Secretary Janet Yellen said in Frankfurt on Tuesday that the US and Europe must confront the threat of Chinese imports “strategically and with unity” to preserve the viability of producers on both sides of the Atlantic and promote “clean energy” development.< br />
Among the issues that will be discussed in Stresa, according to the official program published by the Italian Presidency, – the impact of artificial intelligence on the global economy and "summing up" on sanctions against Russia.

Tax issues will also be discussed, with Italy trying to revive an agreement on a global minimum tax on multinationals, which was signed by some 140 countries in 2021 but has not been fully implemented due to opposition from a number of countries.

The proposal for a global tax on the income of billionaires, put forward by Brazil and France, will also be the subject of discussion at the meeting in Stresa.

Prepared by: Sergei Daga

Natasha Kumar

By Natasha Kumar

Natasha Kumar has been a reporter on the news desk since 2018. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Times Hub, Natasha Kumar worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my natasha@thetimeshub.in 1-800-268-7116

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