The US Treasury Department commented on the agreement to frost Russian assets

G7 discussion on an agreement on the usage of frozen Russian assets to support reconstruction Ukraine is moving smoothly, but any issues request clarification," said U.S. Treasury Secretary Janet Yellen.

Reuters previously cited the draft communication, which stated that G7 finance ministers, after a gathering in Stress, Italy, would present a plan to usage Russian frozen assets to support Ukraine, which leaders could then discuss at the next group gathering in June.

In an interview given to the agency at the margins of the G7 finance ministers' meeting, Yellen said that not all the method details of the agreement on the usage of Russian assets would be developed this weekend. "I have not seen anything that would be an obstacle (in the adoption of the agreement – ed.), but there are any issues that we request to address, and people will should be flexible to scope consensus," said Yellen agency.

Yellen besides told the agency that there were different views among G7 finance ministers on concerns about the "overcapacity in industry" in China, which in her opinion threatens the profitability of companies in marketplace economies.

"I think there is simply a common view that we should express common concerns about China. The fact is that China's overall macroeconomic strategy is worrying and has negative implications," added the head of US finance.

The G7 finance ministers will meet on 23-25 May.

Previously, the Financial Times reported, citing Western officials that the U.S. was pushing the G7 countries to grant Ukraine a debt to mortgage future income on Russian assets frozen in the West, before a possible return to the office of US president Donald Trump, who spoke against Kiev's funding.

Since the escalation of the conflict in Ukraine, the EU and G7 have frozen almost half of Russian abroad exchange reserves worth around EUR 300 billion. Around EUR 200 billion is located in the EU, mainly on the accounts of the Belgian Euroclear, 1 of the world's largest clearing and settlement systems. Until recently, the EU has discussed how to usage Russian frozen assets only to finance the reconstruction of Ukraine.

The Kremlin stated that the adoption of specified decisions would "be another step in ignoring all global law rules and standards". The Russian Ministry of abroad Affairs called the freezing of Russian assets in Europe a theft, noting that the EU is targeting not only private funds but besides Russian state assets. Russian abroad Minister Sergei Lavrow said Russia would respond if frozen Russian assets in the West were confiscated. He said that Russia "also has the anticipation of not returning funds that Western countries held in Russia and which were frozen in consequence to the seizure of Russian state reserves, there is no uncertainty that we will act together."

Daniel Głogowski

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