STRESA: Finance ministers from the Group of Seven (G7) nations have reported “progress” in discussions aimed at using profits from frozen Russian assets to support Ukraine, but they have yet to finalize a concrete proposal to present to a leaders’ summit next month, as per statements released after their two-day meeting in Stresa, northern Italy, AFP reported.
The meeting, which concluded on Saturday, focused on finding innovative and legally sound solutions to support Ukraine amidst its ongoing conflict with Russia. The urgency of the matter was underscored by Kyiv’s urgent appeals for increased financial support from Western allies.
In a draft final statement, the G7 finance ministers acknowledged advancements in exploring potential avenues to channel profits from frozen Russian sovereign assets to benefit Ukraine, within the bounds of international law and respective legal frameworks, AFP reported.
“We are making progress in our discussions on potential avenues to bring forward the extraordinary profits stemming from immobilised Russian sovereign assets to the benefit of Ukraine, consistent with international law and our respective legal systems,” the ministers said in a draft final statement seen by AFP.
They expressed intentions to present a comprehensive proposal to G7 leaders ahead of the summit scheduled for June 13-15 in Puglia, southern Italy.
While speaking at a final press conference on Saturday, Italian Finance Minister Giancarlo Giorgetti, who presided over the meeting, emphasized the strong political commitment of all G7 countries to the initiative. “Progress has been made,” Giorgetti said, adding that there was a “strong political positioning by all the G7 countries” over the idea.
However, he cautioned that the proposal is not yet finalized due to significant technical and legal complexities, though there is a resolute determination to find a solution. “We do not deny the difficulties but there is a firm determination to arrive at a solution,” he added.
The G7 finance ministers reiterated their stance that Russian assets will remain frozen until Russia compensates Ukraine for the damages incurred. Additionally, they pledged to consider further financial and economic sanctions, including targeting Russia’s energy revenue and capabilities in the extractive industries.
Sanctions on individuals and entities facilitating Russia’s military-industrial base were also mentioned. “(The G7 is) ready to impose sanctions on individuals and entities that help Russia acquire advanced materials, technology, and equipment for its military-industrial base,” added the draft statement.
The summit wrapped up a day after the United States announced a new $275-million package of aid for Kyiv, part of a $61-billion military aid deal passed by Congress last month after months of delays.
Kicking off the finance summit, US Treasury Secretary Janet Yellen had urged her counterparts to embrace “ambitious options” in considering how to use the frozen Russian assets.
A debated US proposal would tap the interest generated by the 300 billion euros ($325 billion) of Russian central bank assets frozen by the G7 and EU, creating a $50-billion loan facility backed by future interest on the assets.
Last week, the European Union agreed to a more modest plan, using interest from Russian assets frozen by the bloc in what it estimates could generate up to three billion euros a year.
Finance ministers attending the talks had warned that the Stresa summit was not likely to result in a concrete deal.
The meeting also addressed concerns over China’s trade policies and industrial overcapacity, with the G7 expressing intentions to counteract non-market practices that undermine workers, industries, and economic resilience. They affirmed their commitment to monitoring overcapacity and ensuring a level playing field in accordance with World Trade Organization principles.
“While reaffirming our interest in a balanced and reciprocal collaboration, we express concerns about China’s comprehensive use of non-market policies and practices that undermine our workers, industries, and economic resilience,” the draft statement said.
In February, the United States argued that G7 nations should seize the frozen assets outright, an idea it later backed away from due to the concern of allies that it could be a dangerous legal precedent and that Russia could retaliate.
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