The finance leaders of the Group of Seven (G7) industrial democracies announced on Saturday that they are exploring ways to use future income from frozen Russian assets to assist Ukraine.
This decision comes from a draft statement seen by Reuters. The G7 froze around $300 billion of Russian assets shortly after Russia invaded Ukraine in February 2022.
In their draft statement, the G7 finance ministers said they are progressing in discussions on how to use the profits from these frozen Russian sovereign assets to benefit Ukraine. As per the G7 source, the statement is not expected to change significantly before the final version is released later on Saturday.
The finance ministers will be joined by Ukraine’s Finance Minister, Serhiy Marchenko. Ukraine is currently struggling with a Russian offensive in the north and east of the nation, more than two years after the initial invasion by Moscow.
The ministers and central bankers are meeting in Stresa, northern Italy, to discuss options for Ukraine funding. They aim to present these options to G7 heads of government at a summit in mid-June. The draft statement emphasizes that Russia’s sovereign assets will remain frozen until Russia compensates for the damage caused to Ukraine.
US Advocates Ukraine Aid, Unified Stance on China at G7 Finance Summit (Press on the image to read more)
Another significant topic of the two-day meeting in Stresa is China’s growing export strength and industrial overcapacity. The G7 ministers have expressed concerns about China’s use of non-market policies and practices, which they believe undermines their workers, industries, and economic resilience.
The draft statement mentions that the G7 will continue to monitor the potential negative impacts of overcapacity and may take steps to ensure fair competition, in accordance with World Trade Organization (WTO) principles.
Overall, the G7’s focus is on supporting Ukraine in its ongoing conflict with Russia and addressing economic challenges posed by China’s trade practices.
Comments