G7, EU may use frozen Russian assets as collateral for Ukraine aid - media

The Group of Seven (G7) nations and the European Union are discussing a plan to use more than $250 billion in frozen Russian central bank assets as collateral to help finance Ukraine's recovery.

This was reported by Bloomberg, Ukrinform saw.

Under the proposal being discussed, Ukraine's allies could issue debt obligations to finance Ukraine's reconstruction, using frozen Russian assets as collateral to repay the debt.

Proponents of the plan believe that any settlement of the conflict under international law would require Russia to compensate for the damage it has inflicted on Ukraine.

According to the agency’s sources, if Russia refuses to do so, claims may be put forward for its immobilized assets.

Currently, the plan is being discussed at a technical level. In other words, a political decision on the issue is yet to be made.

At the same time, one of the sources noted that some countries seek to move in this direction faster than others.

Earlier, the Group of Seven countries promised to make Russia pay for the restoration of Ukraine and keep its assets frozen until it does so.

As Ukrinform reported, the U.S. administration officially confirmed negotiations with allies and partners regarding the possibility of confiscating the frozen Russian assets to be used in Ukraine’s recovery efforts.

Russia, on the other hand, is preparing to challenge any steps taken by the USA and the EU regarding the confiscation of the frozen assets of its central bank in the amount of $300 billion in favor of Ukraine.