FT learned about the G7's idea to impose a condition on Russia before confiscating assets

G7 countries are working to issue debt to finance Ukraine using Russian assets as collateral. Moscow will be asked to voluntarily pay these debts or the funds will be confiscated, FT has learned. RUSSIA condemns Western sanctions

G7 countries ( usa , UK , Germany , Italy , CANADA , France and Japan ) are developing a plan to issue debt to finance Ukraine using Russian frozen assets as collateral, the Financial Times (FT) reports, citing sources familiar with the contents of the relevant document.

According to FT interlocutors, the coalition supporting Ukraine will demand that Russia pay off this debt, and if it does not, it will confiscate frozen Russian sovereign assets instead.

As the newspaper notes, such a scheme will allow the G7 countries to raise the funds necessary for Ukraine without the need to immediately resolve legal issues regarding the confiscation of Russian sovereign assets. “One of the things this [decision] will do is put aside the question of what will happen to Russian sovereign assets, even if they are used as collateral,” a source familiar with the talks told the FT.

The plan would provide “some liquidity to Ukrainians based on the coalition’s already made promise that Russia would pay,” the newspaper’s interlocutors said. “Using assets as collateral to raise debt is an attempt to find a compromise between different points of view at the negotiating table both within the EU and in Russia and in the G7,” one of the sources explained.

After the start of the special operation in Ukraine , the EU and G7 countries froze about $280 billion (€260 billion) of assets of the Russian Central Bank in the form of both cash and securities. Over two thirds of them were frozen by the European Union. In 2022, the Russian Ministry of Finance

estimated frozen assets at approximately $300 billion. Most of the frozen Russian assets are located in the Belgian Euroclear (which includes the depository of the same name and Euroclear Bank), from which the group earned about €3 billion in just nine months of last year.

There have been repeated calls in the West and in Kyiv to use frozen Russian assets to restore Ukraine. According to Kyiv, direct damage from military operations amounted to $750 billion, and taking into account indirect damage - $1 trillion. In early February, EU countries approved the use of a mechanism that provides for the use of income taxes (windfall taxes) from frozen Russian assets to help Ukraine. The proceeds are planned to be used to partially finance the €50 billion budget assistance program for Ukraine, adopted for the period from 2024 to 2027.

RBC Pro development program Master 52 skills in a year The development program is a convenient tool for continuous learning new skills for a successful career Operational Excellence: how to achieve excellence in business processes How to work less and increase productivity: 4 tips David De Cremer: “Think before you bet” manager into a copy" The trap of cognitive distortions: how to get out of it for a manager How to effectively conduct a strategic session Good connections: what styles can networking be divided into "Anti-time management": how to learn to keep up with everything The leader from whom they do not leave: how to earn the loyalty of subordinates Eight signs that indicate a confident person If you are tired, downshifting is not the answer. How to save your career What tricks of legendary scammers will be useful to you during negotiations Business coach Matt Abrahams: do not try to speak “correctly”

The Russian Foreign Ministry warned that attempts by Western countries to seize Russian real estate and other assets would lead to an “adequate and effective” response from Russia. President Vladimir Putin compared these actions of Western countries to theft. The very blocking of assets abroad is considered illegal in Moscow.