US Refuses to Join EU's Plan to Use Frozen Russian Assets
(MENAFN) The United States has decided not to participate in the European Union's initiative to use frozen Russian assets as a financial source for Ukraine, a media outlet reported on Monday, citing anonymous sources familiar with the discussions.
According to these sources, US officials communicated their position to European counterparts during a meeting of the International Monetary Fund in Washington the previous week.
One of the sources revealed that the US raised concerns about the potential risks to market stability that could arise from the confiscation of these assets.
This development represents a significant setback for the EU, which has been striving to gain broader support from the G7 nations for action involving Russian funds.
The media outlet noted that the EU has been working to secure a wider consensus on how to utilize these assets.
Following the intensification of the Ukraine conflict in February 2022, Western countries froze around $300 billion in Russian assets, with approximately €200 billion ($213 billion) held by the Brussels-based clearinghouse Euroclear.
The Western nations supporting Kiev have already started using the generated revenue from these frozen assets to help fund Ukraine's efforts.
Recently, the EU has been in talks about a proposal to extend a so-called ‘reparations loan’ of up to €140 billion ($163 billion) to Ukraine.
This loan would be backed by frozen Russian assets as collateral, and it would effectively involve the seizure of those funds. Under this plan, Ukraine would only need to repay the loan once Russia compensates the country for the damages caused during the ongoing conflict.
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