The United States presented a plan to the G7 to move forward with the confiscation of USD 300 billion of Russian assets

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The United States has presented a plan to the Group of Seven (G7) to move forward with the confiscation of USD 300 billion from Russian assets, Reuters reported.

The proposal was discussed by the Finance Ministers of the G7 powers and their deputies, with a commitment to explore options that would allow the confiscation of the funds. The plan aims to accelerate the process and will be discussed further at the upcoming G7 summit scheduled for February 24.

The three main points of Washington’s proposal address the legal guidelines surrounding the confiscation, the method of application, and risk mitigation, as well as options for best supporting Ukraine.

Although the Biden administration has not publicly supported such actions, it made its position clear through the proposal, expressing the hope that it would serve as a countermeasure to induce Russia to end its aggression.

In Europe, where most of the frozen assets are located, the idea of taking Moscow’s money and allocating it to Kiev has received broad approval from most nations. However, there is concern about the legality of the actions and the need for greater secrecy to prevent the Kremlin and its oligarchs from gaining an advantage.

The European Union is exploring options such as the confiscation and direct spending of the assets of the Russian Central Bank, the use of income from frozen assets, or the use of assets as collateral for loans. However, there are concerns about potential retaliation from Russia and the breaking of diplomatic relations with the United States.

Italy, the future president of the G7 in 2024, is concerned about possible reprisals on companies operating in the country. The United Kingdom and France stated that it would not be easy to dispose of the confiscated money and that it would be insufficient to cover Ukraine’s reconstruction needs.

Some G7 members have expressed concern about the potential impact on financial support for Ukraine, with fears that confiscation could lead to a reduction in aid packages.

However, history shows that the G7 has managed to overcome differences between its members regarding economic sanctions on Russia, indicating that further discussions will likely continue to find a resolution to the proposed confiscation of Russian assets.