Moscow fumes as G7 mulling to use assets
G7 finance ministers cited "progress" in finding ways to use profits from frozen Russian assets to help Ukraine as they wrapped up a meeting Saturday, envisioning a concrete proposal to present to a leaders' summit next month.
A search for creative yet legally sound solutions was top of the agenda at the two-day Group of Seven meeting in Stresa, northern Italy, as Kyiv continues its urgent appeals for more funds from Western allies in its third year of war with Russia.
"We are making progress in our discussions on potential avenues to bring forward the extraordinary profits stemming from immobilised Russian sovereign assets to the benefit of Ukraine, consistent with international law and our respective legal systems," the ministers said in a final statement.
G7 finance ministers reiterated in their final statement that Russian assets frozen by the Group of Seven nations "will remain immobilised until Russia pays for the damage it has caused to Ukraine".
But they went further, saying they were "committed to further financial and economic sanctions... including continuing to target Russia's energy revenue and future extractive capabilities".
The G7 is "ready to impose sanctions on individuals and entities that help Russia acquire advanced materials, technology, and equipment for its military industrial base," added the statement.
Russian Finance Minister Anton Siluanov said Moscow would reciprocate if the G7 went through with its threat. His government has already taken control of some Western businesses active in Russia.
Financing for Ukraine and meeting China's growing export strength were the main themes addressed in comments from finance ministers during the gathering.
The United States has been pushing its G7 partners - Japan, Germany, France, Britain, Italy and Canada - to back a loan that could provide Kyiv with as much as $50 billion in the near term.
However, the cautious wording of the statement, containing no figures or details, reflects many legal and technical aspects which need hammering out before such a loan could be issued.
The issue will now be discussed by G7 leaders at a summit in southern Italy in mid-June. The G7 ministers also called out China's trade policies and industrial overcapacity, warning that the bloc could take measures to counter them.
The United States has led warnings that a surge of low-cost Chinese exports fuelled by Chinese government support in key sectors like solar and electric vehicles pose a risk to global markets.
Meanwhile, Russian strikes on a crowded DIY hardware store in the Ukrainian city of Kharkiv yesterday killed at least two people, wounded many more, and triggered a huge blaze that fire crews were battling to contain, regional officials said.
Oleh Syniehubov, Kharkiv regional governor, said via the Telegram messaging app that two guided bombs had hit the DIY hypermarket in a residential area of the city. He said 24 people were injured along with the two confirmed deaths.
Comments