US Treasury Secretary calls for “more ambitious” G7 plans for Russian assets

U.S. Treasury Secretary Janet Yellen on Thursday urged G7 ministers at a meeting in Italy to work on "more ambitious options" for using frozen Russian assets to help Ukraine, UNN reports with reference to AFP.

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Ministers and central bankers from the Group of Seven countries are meeting in Stresa, on the shores of Lake Maggiore in northern Italy, to prepare for next month's G7 heads of state summit in Puglia.

Separately, she said that the participants will also discuss what she sees as "overcapacity" in key green technologies such as electric vehicles, batteries, and solar panels.

On the agenda is a plan to finance vital aid to Ukraine using interest earned from the 300 billion euros ($325 billion) of Russian central bank assets frozen by the G7 and Europe.

The European Union earlier this month approved the use of profits from frozen assets to arm Ukraine, hoping to raise up to three billion euros ($3.3 billion) a year.

At a press conference before the Stresa meeting, she welcomed the plan, but added that "we must also continue our collective work on more ambitious options, taking into account all the relevant risks and acting together.

She said she wants to present "concrete options" at the June 13-15 meeting of G7 leaders.

"Failure to take additional measures is not an option - not for the future of Ukraine, not for the stability of our own economies and the security of our peoples," she said.

The United States has offered to provide up to $50 billion in loans to Ukraine, which has been fighting a Russian invasion for more than two years, secured by interest on its assets.

However, the details have not yet been finalized, including whether the debt will be issued by the US alone or by the G7 countries in general.

"We are waiting for a common agreement on this concept" in Stresa, and the details will be worked out in the coming weeks, Yellen said.

She confirmed that "50 billion is a figure that has been mentioned as a possible figure that could be achieved in this way. But the decision on the amount has not yet been made.

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Initially, Yellen advocated a more radical solution - the confiscation of Russian assets themselves.

But European countries are concerned about setting a precedent in international law and the risk of serious legal disputes with Moscow.

A source in the Ministry of Finance of Italy, which is holding talks in Stresa as the G7 presidency this year, said that the US proposal is "an interesting step forward," but "any decision must have a solid legal basis.

Italian Economy Minister Giancarlo Giorgetti said that Rome would be an "honest mediator" in the discussions, but noted that the task is "very delicate.

France on Wednesday welcomed the U.S. plan, saying it hoped G7 finance ministers would reach an agreement this week.

"The Americans have made proposals that are within the framework of international law, and we are going to work on them openly and constructively," said French Economy Minister Bruno Le Maire.

Yellen said that the Stresa meeting will consider "additional measures" against Moscow for its war in Ukraine, including restricting its access to critical goods that support its armed forces.

Meanwhile, the G7 ministers will also discuss concerns that the Chinese government's support for green technologies is leading to an increase in production capacity that could absorb global markets, stimulating cheap exports and depressing growth in other countries.

"Overcapacity threatens the viability of companies around the world, including in emerging markets," she said.

She added: "It is very important that we and the number of countries that consider this a problem speak with a clear and united voice.