A U.S. proposal to use interest earned on $300 billion in frozen Russian assets to help Ukraine could win broad support from countries concerned about outright asset forfeiture.
This was announced on Thursday by US Treasury Secretary Janet Yellen Reuters.
Yellen welcomed the EU's "very constructive step" to separate the proceeds from assets held by the Brussels-based company Euroclear and transfer them to Ukraine, noting that future interest could also be increased to expand the funds available to Ukraine.
"This is an approach that can be widely supported by countries concerned about asset forfeiture, and part of the interest can be paid, for example, in the form of a loan." Yellen said in an interview with Reuters Next in Washington.
She noted that this approach is one of several options being discussed by the G7 countries ahead of a leaders' summit in June, adding that "he should definitely be on that list."
The US approach is gaining momentum among G7 countries, two G7 officials said in an interview with Reuters on Thursday.
Yellen said Washington remained convinced that a full seizure of Russian assets was justified under international law, but said other approaches would likely be more acceptable to some G7 partners.
G7 members are still at loggerheads over certain "restraints" that could reduce expected revenues to $2,5 billion to $3 billion, one G7 official said, pointing to Belgium's 25 percent tax rate, a "convenience fee" charged by the depository Euroclear, and the proposed litigation reserve.
G7 finance ministers will return to the issue at a meeting in late May to develop a consensus proposal to present to leaders at a June summit, officials said.
"We feel an urgent need to reach an international consensus. Everyone agrees that we need to do more." said the official.
A senior U.S. official said congressional approval of about $61 billion in aid to Ukraine and a separate package of 50 billion euros from the EU would support Kyiv, but it would face funding shortfalls in 2025 and 2026.
At the same time, Washington continues to insist that all options, including the direct confiscation of Russian assets, are justified from the point of view of international law and should remain on the negotiating table, but the US seeks to reach a consensus around an idea that could help Ukraine now, the interlocutor said.
A proposal on interest income could be a real basis for reaching an agreement in June.
To always be aware of the most important things, read us at Telegram
