G7 Nations Consider Supporting Ukraine’s War Effort Through Frozen Russian Assets
Ukraine’s ongoing conflict with Russia may see a potential boost as G7 nations discuss the possibility of providing billions of dollars in loans linked to frozen Russian assets. US Treasury Secretary Janet Yellen revealed this in an exclusive interview with Sky News’ Wilfred Frost, stating her hopes for a united front on the issue during the upcoming G7 finance ministers meeting in Italy. She emphasized that Ukraine has “substantial needs” and urged for support from the international community.
In addition to discussing the situation in Ukraine, Yellen also addressed the potential for China to retaliate against the US sanctions imposed on its green economy last week. She expressed concerns about China’s “massive overcapacity” in markets for products like solar panels and electric cars, and the potential impact on global trade. Yellen also refrained from commenting on the upcoming UK general election but expressed her admiration for women in high offices in politics and economics.
Yellen, an experienced economist who previously served as the chair of the US central bank, spoke in Frankfurt before the G7 talks, where the main agenda is expected to be focused on imposing sanctions against Russia for its involvement in the war in Ukraine. She is advocating for an agreement to use the interest gained on $300 billion of seized Russian state assets to support Ukraine’s war efforts. However, the funds may only be available in the form of loans and not full confiscation, as originally proposed by Yellen.
The US Treasury Secretary also addressed concerns raised by EU officials about the potential risks of confiscating the Russian funds, primarily denominated in euros. She stated, “I think that’s a possibility. I believe it’s important for the G7 to work together to show a united front and to demonstrate our commitment to providing significant resources to support Ukraine in the coming years.”
On the topic of the recent conflict between Israel and Hamas, Yellen confirmed that there have been no discussions within her department regarding possible sanctions against the Israeli government for its handling of the humanitarian crisis in Gaza.
Furthermore, Yellen also highlighted the common concerns within Europe about China’s economic impact on the region. She specifically addressed the influx of Chinese-made goods in the green economy, such as electric cars and solar panels, which are flooding Western markets at uncompetitive prices due to state aid. While acknowledging the possibility of retaliatory tariffs by China, Yellen emphasized the importance of maintaining a strong trade and investment relationship with China and working towards a more resilient supply chain.
In conclusion, Yellen stated, “We recognize the need for a level playing field and are committed to addressing our concerns about China’s impact on critical supplies. We have established working groups to deepen our relationship and are collaborating on issues such as debt, climate change, and financial stability. While there are economic challenges, we believe our trade and investment relationship with China is valuable and we are determined to preserve it.”
