“US ‘Stalling’ G7 Plan on Frozen Russian Assets: Bloomberg Reveals ReasonThe US opposes the EU’s plan to use frozen Russian assets to support Ukraine, citing risks to market stability. This move is a
setback for the EU, which has been trying to persuade G7 countries to join its initiative.
”, — write: unn.ua
DetailsDuring negotiations on the sidelines of the International Monetary Fund meeting in Washington last week, US officials told their European counterparts that they would not join the initiative for now, sources said, asking not to be named because the talks were closed. According to one source, the US explained its reluctance by risks to market stability. Another source said that at this stage, the US is simply not making any commitments.
The move was a setback for the EU, which has been trying to persuade the rest of the G7 to join its plan to use frozen central bank assets as collateral for raising up to 140 billion euros ($160 billion) in loans for Ukraine. The European Commission, the bloc’s executive body, is preparing a detailed draft mechanism but will not publish it until it is approved by EU leaders, which may happen at a summit in Brussels later this week.
As the publication notes, the US opposition coincides with renewed efforts by the White House to end hostilities in Ukraine. President Donald Trump hosted Volodymyr Zelenskyy in Washington last week and announced plans to meet with Russian leader Vladimir Putin in Budapest soon after a phone call with the Russian leader.
AddThe US Treasury Department did not respond to a number of requests for comment, Bloomberg adds. In September, US Treasury Secretary Scott Bessent said the US was open to using approximately $5 billion in Russian assets frozen in the US. “We passed a resolution that allows us to seize them,” he said. “We haven’t said we’re going to do it.”
Washington’s indecision and its fears about market stability are likely to embolden skeptics in the EU, including Belgium, where the bulk of the assets are located. The Belgians have warned that any prolonged use of these assets could provoke lawsuits that could lead to huge liabilities for governments, destabilize confidence in Europe’s financial center, and even weaken the euro.
Frozen Russian assets for Ukraine: Belgium defines “red lines” – Politico09.10.25, 09:50 • 3324 views
The European Central Bank had previously expressed similar concerns. On Sunday, President Christine Lagarde supported the idea of using these assets as collateral, but stressed that it would be better if all countries holding these assets acted together.
Most of the 280 billion euros in frozen Russian assets are held in Europe, mainly in the Belgian Euroclear system. While interest income from these assets is already being transferred to Kyiv, the EU is now exploring the possibility of lending secured by frozen assets as a way to generate significant new funding. However, this is a legally and financially complex structure designed to avoid direct confiscation, and it could lead to legal challenges from Moscow.
EU proposes using frozen Russian assets to buy US weapons for Ukraine – FT17.10.25, 19:33 • 2322 views
European officials expressed frustration with the US’s rejection of the plan, even though they are already moving forward, as the Trump administration is strongly urging the EU to make more active use of Russian funds. Although the amount of assets in the US is minimal, US support for the EU plan would send a positive signal to other countries.
Within the G7, the UK and Canada support Europe’s initiative, while Japan seems to support the US, taking a more cautious approach.