The issue arises amid political disputes in the United States and Europe that have threatened further aid to Kyiv, the Financial Times reported at the end of last week.
The potential seizure of assets would significantly escalate the West's financial campaign against Moscow. The initiative comes as two critical financial aid packages for Ukraine, worth over USD 100 billion, face obstacles due to resistance from US Republicans and opposition from Hungary’s Prime Minister Viktor Orbán in the EU.
“Extraordinary times require extraordinary measures,” Britain's top diplomat David Cameron has said, emphasizing the urgency and legality of the proposed action, and telling a parliamentary committee that he is “pushing hard” for such a decision.
A US administration source quoted by the Financial Times indicated active discussions regarding the use of Russian assets, noting the limited time available to make a decision.
The issue might be a topic at a potential G7 summit marking the second anniversary of Russia's full-scale invasion in February 2024.
So far, apprehension about deterring foreign investors has made G7 governments hesitant to seize these assets. However, recent US participation in G7 working committees suggests a growing openness to this approach, with arguments that it can be done under international law, according to the report by the Financial Times.
Cameron said that seizing Russian funds would not deter investors, pointing out that the very act of freezing these assets should be more concerning to them.
The largest portion of the USD 300 billion in Russian assets is in Europe. Still, countries such as Germany, France, and Belgium have shown reluctance due to legal concerns, including protecting state assets under international law.
But, despite these challenges, there is a “growing consensus” within the G7 favoring the use of Russian assets for Ukraine, the newspaper said.
(jh/gs)
Source: PAP, Financial Times