G7 declares its readiness to use full value of Russia's frozen assets to support Ukraine
The Group of Seven (G7) countries have announced their intention to explore a wide range of financial instruments to support Ukraine, including the potential use of the full value of Russian state assets frozen in their jurisdictions until Moscow pays reparations.
The joint statement released on Tuesday night noted that such decisions will be made in compliance with the national legal systems of the participating countries.
The meeting was held via videoconference with the participation of G7 finance ministers and the heads of the International Monetary Fund (IMF), the World Bank Group, the Organisation for Economic Co-operation and Development (OECD), and the Financial Stability Board. The meeting was also joined by Canada's Minister of Energy and Natural Resources, as well as finance ministers and their representatives from Australia, Chile, India, Mexico, and South Korea.
The G7 also welcomed the IMF's update on the macroeconomic situation in Ukraine and the achievement of a preliminary Staff Level Agreement between the Fund and the Ukrainian authorities. The ministers reaffirmed their commitment to jointly support a new IMF program for Ukraine.
“We will continue to support the Ukrainian authorities’ commitment to implement reforms, notably addressing informality, tackling corruption, and improving governance including in the state-owned enterprise sector,” a joint statement by the participants following their virtual meeting on December 8 reads.
The statement's authors also noted their readiness to increase pressure on Russia if peace talks fail, and emphasized the importance of maintaining the Ukrainian issue among the priorities of France's future G7 presidency.
At the same time, the meeting participants discussed other global issues, but specifically reaffirmed their "unwavering support for Ukraine's territorial integrity, sovereignty, and right to exist."
As reported, the European Commission is preparing a legislative initiative that would allow frozen Russian assets to be used as a guarantee for a reparation loan to Ukraine. The issue is scheduled for consideration at the EU summit on December 18-19.