FT: US proposes G7 explore ways to confiscate $300bn in Russian assets
The United States has put forward the idea that the Group of Seven (G7) countries explore options for confiscating Russia’s frozen assets worth about $300bn, TASS reports with reference to the Financial Times newspaper
According to newspaper’s sources, in December, G7 finance ministers and their deputies began discussing how to create a confiscation mechanism and avoid the risks associated with it. The US, backed by the UK, Canada and Japan, has proposed moving forward with preparatory work so that options would be ready for G7 leaders to consider at a potential meeting in late February 2024. Washington proposed discussing the possibility of confiscation in the format of three working groups, which will be responsible for the legal side of the issue, methods of applying the mechanism and reducing risks, as well as considering ways to direct confiscated assets to support Ukraine.
Germany, Italy and France noted that the legality of the seizure of Russian assets must be carefully assessed before decisions are agreed upon and made. Moreover, a number of European ministers consider it necessary to introduce a high level of secrecy of discussions.
According to the Financial Times, Western countries are exploring the possibility of both direct confiscation of frozen Russian assets and the use of proceeds from them.
Earlier, at a special briefing, a high-ranking representative of the American administration noted that the US is aimed at the strategic goal of attracting frozen Russian assets to Ukraine restoration. According to him, the US administration ‘has publicly stated that it is in contact with its G7 partners regarding the best and most appropriate way to ensure that Russia does not choose whether and when it will compensate Ukraine for the damage it has caused’.
