Most G7 governments have so far been hesitant to seize Russian assets for fear that some foreign investors with assets in dollars and euros will flee.
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| A building destroyed after being hit by artillery during the Russia-Ukraine conflict in the city of Kharkiv, March 8, 2022. Ukraine needs reconstruction. |
Western nations are actively seeking to use seized Russian assets to fund Ukraine, as political wrangling in the US and Europe threatens financial support for the conflict-torn Eastern European country.
In recent weeks, officials from the Group of Seven (G7) leading industrialized nations have stepped up talks about a proposal to release some of the roughly $300 billion in frozen Russian assets, a radical move that would open a new chapter in the West’s financial war against Moscow.
The move comes as two major financial aid packages for Kiev worth more than $100 billion stalled this week, as Republicans in the US Congress and Hungarian Prime Minister Viktor Orbán took a stance against funding for Ukraine.
Seizing Russian assets could provide an alternative source of funding for Kiev, especially given the estimated cost of reconstruction after the conflict. However, most G7 governments have so far been reluctant to take such a step, fearing that some foreign investors with assets in dollars and euros would flee.
Although the US has never publicly supported the asset seizure proposal, in recent weeks Washington has quietly taken a more assertive stance, arguing at G7 committees that there is a roadmap for asset seizure “in accordance with international law”.
A US official revealed that the issue could be discussed at a potential summit of G7 leaders, coinciding with the second anniversary of the Russia-Ukraine conflict.
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