Meeting of finance ministers and central bankers of G7 countries in Stresa, Italy, in an attempt to reach a common position on the use of frozen Russian assets to support Ukraine's war effort and how to respond to the growing strength of Chinese exports in key markets, Reuters reported, quoted by NOVA.
Negotiators from the US, Japan, Germany, France, Britain, Italy and Canada have been debating for weeks how best to use Russian financial assets worth about 300 billion dinars, which were frozen shortly after Russian troops invaded Ukraine in February 2022.
The US is pressing to find a way to use the future revenue from these assets - by issuing bonds or, more likely - by extending a loan to Kiev that could provide the Ukrainian authorities with $50 billion in the short term.
However, numerous legal and technical issues must be resolved, meaning a final agreement cannot be expected in Stresa, several officials noted. This means that informal talks will continue in order to present a proposal to the G7 heads of state and government, who will gather in Puglia, southern Italy, between June 13 and 15.
The idea of the G7 issuing bonds to Ukraine appears to have lost support, with the US now offering a loan backed by proceeds from the frozen assets.
Clarity needs to be achieved on issues such as who will administer the credit (the World Bank or another organization), how it will be guaranteed, how future profits can be assessed, and what will happen in the event of a peace agreement with Russia.
European officials are particularly cautious, with one European diplomat saying a final decision could take "weeks, if not months".