G7 Finance Chiefs "Cooperation on Iran Sanctions and Use of Frozen Russian Assets"

The finance chiefs of the Group of Seven (G7) have agreed to cooperate on Iran sanctions and the issue of frozen Russian assets.

On the 17th (local time), according to major foreign media, the G7 finance ministers and central bank governors issued a joint statement in Washington DC following the International Monetary Fund (IMF) annual meeting, announcing that "we will closely cooperate on future measures to reduce Iran's ability to acquire, produce, and transfer weapons."

Bruno Le Maire, French Minister of Finance
[Photo by AFP Yonhap News]

They forecast significant geopolitical risks due to the war between Ukraine and Russia and conflicts in the Middle East, which could affect trade, supply chains, and commodity prices.

They also stated that they are doing their utmost to help Ukraine cope with the short-term financial crisis caused by the Russian invasion, including utilizing revenues from frozen Russian assets to support Ukraine.

In the statement, they said, "We reaffirm our determination to make Russia pay for the damage it has caused to Ukraine," adding, "Until then, Russian assets within our jurisdictions will remain frozen under each country's legal system."

The statement did not specify concrete plans for the use of frozen assets but aims to present specific options at the G7 summit to be held in Italy this June. They said, "We will continue to discuss all possible measures to ensure that frozen Russian assets can be used to support Ukraine."

Frozen Russian assets held by G7 member countries, the European Union (EU), Australia, and others amount to $300 billion (approximately 412 trillion won). Most of these are tied up within Europe, including Belgium, generating an estimated annual revenue of 3 to 5 billion euros (approximately 4.4056 to 7.3427 trillion won). Western countries such as the US and the EU have been discussing using the revenues generated from these frozen Russian assets within their jurisdictions to support Ukraine's military efforts since the war began.

Earlier, Wally Adeyemo, US Deputy Treasury Secretary, said that discussions within the G7 regarding frozen Russian assets are still ongoing, and technical talks are underway to establish a strong legal basis to fully seize these assets. Options under consideration include confiscating assets, using them as collateral, or leveraging excess profits or interest income to finance loans.

Bruno Le Maire, French Finance Minister, said, "Our proposal is to carefully consider how this 3 to 5 billion euros can be used to help Ukraine."