During the upcoming G7 summit in Italy, President Biden will urge leaders to utilize $300 billion in frozen Russian assets to support Ukraine. For the past two years, Western allies have deliberated on how to manage these assets. Now, the G7 appears close to a compromise.
European leaders were concerned that outright seizure of the assets would breach international law. In response, the Biden administration proposed using the interest generated from these assets to back a loan, potentially up to $50 billion, which could be immediately provided to Ukraine. This loan would be repaid over time with profits from the frozen Russian funds, according to Western officials.
The G7 leaders are also expected to address measures to prevent China from aiding Russia by selling "dual use" microelectronics and other equipment that could bolster its military. In a related move, the Biden administration announced new sanctions yesterday aimed at stopping China from assisting the Kremlin in its invasion of Ukraine.
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