US leads effort to send additional $50B to Ukraine
US leads negotiations within the G-7 nations to formulate a military assistance package for Ukraine
U.S. G-7 meetings proposed sending a $50 billion aid package to Ukraine. The package is expected to be financed through the proceeds generated by the accumulated interest on frozen Russian assets.
Western nations and Kyiv’s other allies have immobilized about $300 billion of Russian assets in response to Russia’s full-scale invasion of Ukraine, with about $5 billion held in the United States.
The frozen Russian assets, primarily in the European Union, are expected to yield around 5 billion euros ($5.39 billion) in annual windfall profits. The Western allies can use these profits to repay the additional aid funding for the proposed package.
“Ideally, we would prefer the active involvement and participation of all G-7 members rather than the United States acting alone,” stated U.S. Treasury Secretary Janet Yellen in an interview with Bloomberg. G-7 allies are currently deliberating on the plan, according to Yellen.
According to informed sources, the U.S. seeks to reach a consensus on a plan for the June G-7 meeting in Italy. However, experts anticipate that finalizing an agreement could take several months.
Washington has consistently advocated for the direct transfer of Russian funds to Kyiv, positioning itself as one of Kyiv’s supportive allies. European countries, in contrast, have displayed more caution due to concerns about potential economic and legal complications. Instead, the EU has developed a unilateral strategy to use the proceeds generated from the immobilized assets to finance Ukraine’s defense aid.
The U.S. is currently developing a plan that, if approved, would replace the EU’s exclusive proposal.
Moscow has stated that if Washington seizes Russian assets, it may reduce the level of diplomatic relations with the U.S. The bilateral relations between the two nations have significantly worsened since the commencement of the large-scale military invasion.
Ukraine has requested additional financial assistance and weapons from Western allies due to shortages in ammunition and air defense, as well as the expected Russian offensive during the summer. In April, the U.S. authorized a $61 billion aid package. However, Ukraine still lacks sufficient weapons, as aid is expected to arrive gradually in the upcoming weeks and months.
The REPO Act, recently approved by the U.S. Congress, grants President Joe Biden’s administration the authority to confiscate Russian assets held in American banks and redirect them to Ukraine.
Source: Newsroom
