02 March 2024

G7 finance meeting marred by divisions over seizing Russian assets

Feb 29, 2024

European leaders should discuss using the profits from frozen Russian assets to boost Ukraine’s military in its defense efforts against Moscow, European Commission President Ursula von der Leyen said Wednesday. Von der Leyen’s comments come after U.S. Treasury Secretary Janet Yellen on Tuesday said it is important to find a way to unlock the value of frozen assets to bolster Ukraine, stressing that there is a “strong international law, economic and moral case” to do so and that it was crucial for allies to work together on the matter. The European Union has been considering using profits from Russian frozen assets to support Ukraine for some time now. This has included military support as well as helping Ukraine with its reconstruction efforts.

However, officials have expressed concerns about both the legality of using frozen assets, as well as potential fallout for global currency markets.

French Finance Minister Bruno Le Maire argued on Wednesday (February 28) that there is not enough basis in international law to seize the Russian assets, emphasizing that such a move would require the endorsement of G20 members and other countries. And German Finance Minister Christian Lindner said on Wednesday the Group of 20 finance ministers are discussing financing for Ukraine and want to raise the pressure on Russia. Editor: Zou