U.S. prods G7 to seize Russian assets
REUTERS/Nathan Howard/File Photo
The Unites States will ask other G7 members to develop a legal mechanism for seizing roughly $300 billion in frozen Russian assets and redirecting the proceeds to Ukraine’s defense, Bloomberg reported on Sept. 12.
Most of the frozen Russian Central Bank funds are held in Belgium’s Euroclear clearing house.
“The US will also tell the G-7 countries they should create a legal pathway to seize immobilized sovereign Russian assets and consider seizing or using the principle of those assets to fund Ukraine’s defense, according to a US proposal seen by Bloomberg,” the report said.
U.S. officials have discussed with their European counterparts a phased approach to taking control of frozen Russian assets, aiming to intensify pressure on dictator Vladimir Putin and force Moscow to negotiate a peace deal with Kyiv, sources said.
Canada, which currently holds the G7 presidency, convened its finance ministers on Sept. 12 “discuss further measures to increase pressure on Russia and limit their war machinery.”
Separately, the White House has urged the EU to impose secondary tariffs of 50 percent to 100 percent on China and India—unless they stop buying Russian oil—to cut off the revenues used to fuel Russia’s military industry.
On Aug. 27, U.S. Treasury Secretary Scott Bessent said he opposes the immediate confiscation of Russian assets, preferring to retain them as leverage over Moscow in any future negotiations. Belgian PM Alexander De Croo has made a similar case for keeping the assets under the custody of Euroclear rather than seizing them outright.
On Aug. 29, Politico reported the European Commission is preparing a plan to invest about EUR200 billion ($235 billion) in frozen Russian assets into higher-risk projects to generate greater returns for Ukraine’s reconstruction and defense needs.
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