U.S. proposes G7 to explore ways to confiscate $300B in Russian assets - FT

According to Ukrinform, this was reported by the Financial Times.

The United States, with the support of the United Kingdom, Japan, and Canada, proposed to continue preparatory work so that the options would be ready for consideration by G7 leaders at a potential meeting around February 24.

Although no decisions have been made, and the issue remains a subject of heated debate in European capitals, the acceleration of work on the confiscation of Russian assets for Ukraine emphasizes its growing importance to the West, the article says.

According to informed sources, this topic was discussed this month by both G7 finance ministers and their deputies.

The three working groups proposed by Washington will examine the legal issues surrounding confiscation; how to implement such a policy and mitigate the risks; and options for how best to target support to Ukraine.

Germany, France, Italy, and the EU expressed some reservations, as well as the need to carefully assess the legality of Moscow's asset confiscation before making a decision. Several European ministers emphasized the need to maintain a high level of secrecy in this work.

According to the newspaper, Western capitals are considering various options, ranging from direct confiscation and spending of the Russian central bank's assets to earning income from frozen assets or using them as collateral for loans.

The EU has not yet confiscated Russian assets but is instead exploring ways to seize profits earned by financial institutions such as Euroclear, which holds sovereign assets worth €191 billion, the publication says.

Washington has not yet publicly supported the seizure of Russian assets. However, this year, the United States privately circulated a discussion paper within the G7, suggesting that the seizure of Moscow's frozen assets would be legitimate as a countermeasure to encourage Russia to stop its war of aggression.

However, Europe, where most of the assets are located, is much more cautious, fearing possible consequences for financial stability and retaliation from Russia. Italy, which will hold the G7 presidency in 2024, is among those concerned about potential retaliation against its companies operating in Russia, which Moscow has already threatened. Russia has also warned that it will cut off diplomatic relations with the United States in response to any asset confiscation.

The EU, Britain, and France also emphasized that this money would not be readily available, would not be sufficient to cover Ukraine's reconstruction needs, and that the seizure of assets should not come at the expense of financial support for Kyiv in 2024.

According to the publication, over the past two years, the G7 has been able to overcome disagreements among its members several times over economic measures against Russia, including the initial broad package of sanctions and the establishment of a cap on the price of Russian oil.

As Ukrinform reported, Italian Foreign Minister Antonio Tajani assured that Ukraine will remain in the spotlight during Italy's G7 presidency next year.