:quality(85)/cloudfront-us-east-1.images.arcpublishing.com/infobae/2RMEE4OR75HLLHSR2VAGOR3GYA.jpg "The United States urgently called for a G7 agreement to allocate embargoed Russian funds to the reconstruction of Ukraine")
US Treasury Secretary Urges G7 Agreement to Allocate Frozen Russian Assets to Ukraine
US Treasury Secretary Janet Yellen has called on G7 leaders to urgently reach an agreement to allocate profits from frozen Russian assets to support Ukraine. Yellen made the plea ahead of the G20 Finance Ministers meeting, where discussions on the allocation of funds to Ukraine will take place.
Since the start of the conflict in February 2022, nearly $397 billion has been accumulated from frozen Russian assets. However, the international community has yet to reach a consensus on how to use these funds, amid concerns over potential financial instability.
Yellen emphasized the importance of transferring funds to Ukraine as assistance for its troops. She highlighted the need for joint action from Canada, France, Germany, Italy, Japan, the United Kingdom, the United States, and the European Union to support Ukraine.
The Prime Minister of Poland, Donald Tusk, and his Canadian counterpart, Justin Trudeau, also stressed the importance of allocating funds to Ukraine for its defense. They emphasized the need for all Western countries to act decisively in supporting Ukraine during the conflict.
Yellen discussed various approaches to utilizing the frozen assets, including seizing the assets themselves or using them as collateral to borrow from world markets. The IMF estimates that Ukraine will require $37.3 billion to maintain financial stability in 2023, in addition to significant funding for weapons, training, and reconstruction post-conflict.
Ukrainian Prime Minister Denis Shmigal has also emphasized the importance of using frozen Russian assets for the country’s recovery. He stressed the need to start this process immediately to support Ukraine’s reconstruction efforts.
The call for action comes as Ukraine continues to face challenges in receiving support from the West amid ongoing conflicts and geopolitical issues. Yellen’s plea for the allocation of funds demonstrates the urgent need to assist Ukraine in its efforts to rebuild and stabilize its economy.