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US and allies make progress on using Russian assets to benefit Ukraine


The United States and its G7 partners are making progress in finding ways to provide Ukraine with the necessary assistance at the expense of profits from frozen Russian assets. This was stated by Assistant Secretary of the U.S. Treasury for International Finance Brent Neumann, Reuters reports.

According to him, the EU’s recent decision to use funds from the so-called “windfall profits” received from frozen assets could potentially provide billions of dollars a year to help Ukraine resist the Russian invasion.

Neumann noted that the United States and its G7 partners are currently discussing how to provide Ukraine with even more funds.

“One possibility would be to provide a substantial amount up front to help Ukraine in the short term, and tie the repayment of that loan to the flow of future windfall profits,” he said.

Neumann explained that this would provide an immediate fiscal stimulus for Ukraine and also send a signal to Russian dictator Vladimir Putin that he cannot “outlast Ukraine and its partners.”

Reuters writes that the US is pushing the UK, Canada, France, Germany, Italy and Japan to provide a loan secured by the proceeds of frozen assets of up to $50 billion in the short term.

The loan was the best option given that the G7 countries disagree on asset confiscation.

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