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The United States has come up with a plan to provide Ukraine with tens of billions of dollars in additional aid

Oleksandr LytvynNews
Frozen assets of the Russian Federation
Frozen assets of Russia. Illustrative photo. Source: Created with the help of AI

U.S. Treasury Secretary Janet Yellen will try to convince her colleagues from the G7 countries to agree to a plan that will provide Ukraine with more funds. It involves issuing bonds to guarantee interest income on frozen Russian assets and increasing the interest rate on the income.

The bond issue is necessary to quickly provide more money to Ukraine, a senior U.S. Treasury official said, according to Reuters. On the eve of Yellen's May 21-25 trip to Frankfurt, Germany, and a meeting of G7 finance ministers and central bank governors in Stresa, Italy, the official told reporters that the G7 is "making progress" in reaching consensus on a plan to use $300 billion in Russian sovereign assets.

The G7 finance ministers were instructed to recommend a plan to G7 leaders for adoption at the summit in June in southern Italy. The G7 industrial democracies include the United States, Japan, Germany, France, the United Kingdom, Italy and Canada. Yellen had previously pushed for full asset confiscation, mostly in euros, but officials in Europe, concerned about risks to the euro and problematic legal precedents, balked, opting instead for a more conservative plan to place the proceeds, estimated at about $3.5 billion a year, in a fund for Ukraine.

Since then, the US has proposed a plan to raise the interest rate on assets to secure a bond or loan that would bring in possibly $50 billion in the near future for Ukraine as it fights growing military pressure from Russia.

As OBOZ.UA previously reported, U.S. Special Representative for Ukraine's Economic Recovery Penny Pritzker explained that the process of confiscating Russian assets would require a collective decision by all countries that have frozen Russian funds in their financial institutions. It will take time, so we should not expect it to happen quickly.

The International Monetary Fund has stated that decisions to confiscate Russian assets should be made by the relevant authorities in the countries where they are located. The IMF will monitor developments to assess the impact on the international financial system.

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