Discussed at G7 Finance Ministers' Video Conference
Joint Statement Mentions It Only as an "Option"
On October 2 (local time), Politico Europe reported that the European Union's "Big Three" are urging the United States and Japan, both members of the Group of Seven (G7), to join efforts regarding the use of frozen Russian assets.
According to three officials, Germany, France, and Italy argued during the previous day's G7 finance ministers' video conference that the world's major economic powers should act jointly on the issue of Russia's frozen assets.
The EU is considering a plan to provide 140 billion euros (approximately 231 trillion won) of Russian central bank assets frozen within the bloc to Ukraine under the name of "reparations loan." However, no agreement has yet been reached among EU member states.
Similar to how commercial banks reinvest customer deposits, the plan envisions utilizing the principal of Russian assets without confiscation, as long as it does not violate legal boundaries. If all 27 EU countries jointly guarantee the plan, the risk burden could be minimized.
However, the European Central Bank (ECB) remains concerned that touching Russian assets could undermine confidence in the euro in international financial markets.
Therefore, Politico explained that if the United States, Japan, and other countries declare their intention to use Russian assets frozen in their jurisdictions in a similar manner, the EU's concerns could be alleviated. The requests from Germany, France, and Italy are interpreted in this context.
The United Kingdom, another G7 member, announced last month that it is considering the use of frozen Russian assets, while Canada has expressed support for the EU's plan. The position of the United States remains unclear, and Japan is expected to follow the U.S. decision.
The G7 joint statement released after the previous day's meeting specified only that the use of frozen Russian assets is "one of the options." The statement said, "We are developing a range of options to address Ukraine's funding needs and to prevent Russia from buying time," and added, "This includes the coordinated use of the full value of Russian state assets (RSA) frozen within our jurisdictions."
The G7 finance ministers are expected to continue discussions at their next meeting scheduled for October 15 in Washington, D.C.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
