Foreign ministers confident of agreement to use bank assets as security for Ukraine reconstruction loan
Hopes of a multi-country deal to use $300bn of Russian state assets frozen in the European banking system to support Ukraine have grown after it emerged that G7 ministers were confident of overcoming technical and political obstacles at a meeting in northern Italy on Saturday.
The Canadian finance minister, Chrystia Freeland, said she was optimistic that G7 leaders would reach an agreement, as support coalesced around a plan to use frozen Russian central bank assets as security for a $50bn (£39bn) loan.
Finance ministers from the Group of Seven nations gathered in Stresa, Italy, have been in discussions to thrash out a plan to present to national leaders for final agreement at a summit in mid-June.
About $300bn (£235bn) belonging to the Russian central bank has been frozen in the west, largely in foreign currency, gold and government bonds. About 70% of this is held in the Belgian central securities depository Euroclear, which is holding the equivalent of £162bn.
The US is estimated to have $40bn-$60bn worth of Russian assets, and the UK closer to £25bn, but no official figure has been disclosed.
Ukraine has been pushing for access to the funds to help finance the reconstruction of its battered infrastructure, freeing up other loans and grants to buy extra weaponry in the war with Russia. Russia recently opened a new front north of Kharkiv and consolidated its position in the south, thwarting Ukrainian advances.
The British foreign secretary, David Cameron, has previously said the UK was in favour of lending Ukraine the entire sum on the basis that Russia will be forced to pay reparations at the end of the war.
