2024-02-28 07:03:43
Yellen: G7 should join forces to seize profits from Russian frozen assets for Ukraine’s use
(AFP, Sao Paulo, 27th) U.S. Treasury Secretary Yellen said today that the Group of Seven major industrial countries (G7) countries urgently need to join forces to seize the profits generated by Russia’s frozen assets and allocate them to Ukraine; at the same time, the G7 is preparing to A meeting is held on the topic.
After Moscow launched a full-scale invasion of Ukraine in 2022, Western countries froze Russian bank accounts, investments and other assets as sanctions. Today, more and more people in Europe and the United States are calling for the use of billions of dollars to set up a fund for Ukraine.
“It is necessary and urgent for our coalition to find a way to unlock the value of these fixed assets to support Ukraine’s continued fight once morest Russia and long-term reconstruction,” Janet Yellen told reporters in Sao Paulo, Brazil.
“There are strong international legal, economic and moral reasons for this plan… It demonstrates that Russia cannot win by prolonging the war and will bring it to the negotiating table for a fair peace with Ukraine.”
Russian Finance Minister Anton Siluanov called the proposal “destructive.” Brazil’s O Globo daily reported that Shiruanov warned that such measures would subject countries’ overseas assets to political decisions, thereby damaging the global financial system.
Yellen urged the G7 and the European Union (EU) to take joint action following assessing risks, including triggering financial instability. G7 members include Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
As the Russia-Ukraine war enters its third year, the G7 is expected to gather on the sidelines of the Group of 20 (G20) finance ministers meeting in Sao Paulo tomorrow to discuss support for Ukraine.
Canadian Deputy Prime Minister Chrystia Freeland said she agreed “100 percent” with Yellen’s sentiments.
Ukraine warned that since the U.S. Congress has not yet approved a new $60 billion security aid plan, Ukraine urgently needs more military and financial assistance, making Western countries freeze Russian assets worth approximately $397 billion and become the focus of attention from all walks of life. These include central bank assets, yachts, real estate and other properties belonging to oligarchs close to President Vladimir Putin.
However, there are risks, including the possibility of legal action by Russia and the possibility that countries such as China may reduce investment in the West out of fear of similar action.
“I think (financial instability) is extremely unlikely, especially given the unique nature of this situation, where Russia is blatantly violating international norms and a group of countries representing half of the global economy have the ability to act together,” Yellen said.
“We are evaluating and outlining options for consideration.” (Translator: Liu Wenyu/Verification: Xu Ruicheng)
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