G7 officials make progress but no final deal on money for Ukraine from frozen Russian assets

Finance officials from the Group of Seven rich democracies said they had moved toward agreement on a U.S. proposal to squeeze more money for Ukraine from Russian assets frozen in their countries. But the ministers left a final deal to be worked out ahead of a June summit of national leaders.

Finance officials from the Group of Seven rich democracies said they had moved toward agreement on a U.S. proposal to squeeze more money for Ukraine from Russian assets frozen in their countries. But the ministers left a final deal to be worked out ahead of a June summit of national leaders.

“We are making progress in our discussions on potential avenues to bring forward the extraordinary profits stemming from immobilized Russian sovereign assets to the benefit of Ukraine,” the draft statement said, without providing details.

Despite the progress made at the the meeting in Stresa, on the shores of Lago Maggiore in northern Italy, a final decision on how the assets will be used will rest with the G7 national leaders, including U.S. President Joe Biden, next month at their annual summit in Fasano, in southern Italy.

Host Finance Minister Giancarlo Giorgetti said that “progress has been made so far” but that there were “legal and technical issues that have to be overcome.”

“It is not an easy task but we are working on it,” he said at a news conference following the end of the meeting.

Ukrainian Finance Minister Serhiy Marchenko joined the finance ministers and central bank heads at their concluding session on Saturday.

The U.S. Congress has passed legislation allowing the Biden administration to seize the roughly US$5 billion in Russian assets located in the U.S., but European countries have a strong voice in the matter since most of the US$260 billion in Russian central bank assets frozen after the Feb. 24, 2022, invasion are held in their jurisdictions.