G7 to discuss utilizing frozen Russian assets to support Ukraine | Global News

The G7 and its allies have frozen approximately $300 billion of Russian assets following Moscow’s invasion of Ukraine in February 2022. Finance chiefs from the Group of Seven industrial democracies are now exploring ways to utilize the future income from these frozen assets to support Ukraine, as per a draft statement seen by Reuters.

The G7 has been in discussions on how to leverage the immobilized Russian sovereign assets, which include major currencies and government bonds primarily held in European-based depositories. The United States has been urging its G7 partners to endorse a loan that could potentially provide Ukraine with up to $50 billion in the near future.

However, the draft statement does not provide specific figures or details, indicating that there are legal and technical aspects that still need to be addressed before such a loan can be issued. The G7 aims to present funding options for Ukraine to the heads of government at a summit in mid-June.

In addition to addressing the situation in Ukraine, the G7 ministers also expressed concerns about China’s use of non-market policies that undermine workers, industries, and economic resilience. They vowed to monitor the negative impacts of overcapacity and consider steps to ensure a level playing field in line with World Trade Organization principles.

Furthermore, the G7 finance leaders plan to finalize the first pillar of an agreement on a global minimum tax rate for multinationals by the end of next month. This agreement aims to reallocate the taxing right on U.S.-based digital giants, allowing around $200 billion of corporate profits to be taxed in the countries where the companies operate.

The G7 also emphasized the importance of maintaining correspondent banking links between Israeli and Palestinian banks to facilitate vital transactions, trade, and services, echoing a warning from U.S. Treasury Secretary Janet Yellen against cutting off this crucial financial lifeline for the embattled territories.