The United States and its Group of Seven (G7) allies continue to explore ways to unlock nearly $300 billion in frozen Russian assets to help Ukraine. This was stated by US Treasury Secretary Janet Yellen on Tuesday. Her words were quoted by Reuters, according to UNN.
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During a press conference in Washington, D.C., on the sidelines of the spring meetings of the International Monetary Fund and the World Bank in the United States, Yellen said she had concerns about Russia, which could be emboldened by domestic debate in the United States and elsewhere about continuing to help Ukraine.
I'm afraid that Russia is starting to see signs that the US and our allies are getting tired or having a harder time finding ways to support Ukraine, and that gives them hope that they can outlast us and wait for our resolve to crumble.
Therefore, Yellen is convinced that Ukraine needs constant flows of support, and this is a great incentive to monetize frozen Russian assets.
Yellen said she has been involved in many conversations on this issue and it will be discussed at the Group of Seven (G7) meeting of developed economies on Wednesday.
She also noted that a number of possibilities are being discussed, from direct seizure of assets to using them as collateral, noting that Washington is "very supportive" of the European Union's recent moves to separate interest income from immovable assets.
At the same time, a senior Finance Ministry official said that no options had been considered, but noted that Ukraine would also not be able to absorb the entire amount at once, even if all frozen assets were seized.
One of the most promising proposals under consideration is for the G7 countries to extract interest from frozen Russian assets to use as collateral for loans or bonds issued to help Ukraine, according to sources familiar with the matter.
Discussions will continue this week, the Treasury official said, but no major milestones are expected. The official declined to say which option is more likely, noting that the final decision will be made by G7 leaders.
In a comment to Reuters, the official also noted that past actions - including the asset freeze - also seemed unlikely months before they were taken.
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Ukrainian Finance Minister Sergiy Marchenko tells Reuters that he will meet with German Finance Minister Christian Lindner and other G7 officials this week, emphasizing the need for G7 unity on whatever approach is taken.
The United States insists that there is a strong basis in international law for seizing Russian assets, but Germany and France have expressed concern about any such move, worried that it could set dangerous precedents.
The use of interest from assets as collateral for loans or bonds will not require the seizure of assets.