Germany signals support for US push to seize frozen Russian assets, hand over to Ukraine – Bloomberg

The German government is ready to support the American plan to use future revenues from frozen Russian assets, which are mostly concentrated in Europe, to support aid to Ukraine in the amount of $50 billion, Bloomberg reported with reference to anonymous sources.

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Berlin's green light could be a crucial step that would bring Washington and its allies closer to securing a substantial new aid package for Kyiv and guaranteeing U.S. participation regardless of the outcome of the November election.

America's plan is to collect a large amount for Ukraine at one time (according to various estimates from $30 to $50 billion), and not to give it to Ukraine in small tranches over many years, as the European Union currently plans.

U.S. and EU officials said the U.S. proposal was gaining momentum and was expected to dominate talks between finance ministers and central bank governors from the G7 nations, who are gathering in Italy for their annual meeting on May 23, reporters said.

The agency's interlocutors noted that German officials do not expect any final agreement before the June 13-15 G7 leaders' meeting, nor do they expect its implementation until next year.

G7 finance ministers at a meeting in Italy are to discuss a compromise plan regarding frozen assets of Russia, which will allow Ukraine to receive approximately 30 billion euros, according to media reports on Monday.

Russia may retaliate for the confiscation of its assets, Reuters warned on May 2.

In March, EU leaders agreed to confiscate most of the profits from frozen Russian assets and transfer them to Ukraine.

Confiscation of Russian assets is no longer considered at the level of the Group of Seven. The countries of the European Union, where the majority of these assets are physically located, and the European Central Bank oppose such a move.