The G7, led by the US, is discussing giving Ukraine $50B secured by profits from the assets of the Russian Federation; there is no longer any talk of confiscation.

The US is negotiating with its close partners to provide Ukraine with aid worth up to $50B, with the costs to be repaid with profits from sovereign Russian assets. The US insists on concluding an agreement at the meeting of G7 leaders in Italy in June.

According to Euroclear, in the first quarter €159B of Russian frozen assets generated €557M in net profit. Since 2023, these assets have generated around €3.9B in revenue and will generate around €5B yearly.

The central element of the US proposal is to direct these revenues to increase the volume of urgently needed support for Ukraine. Another option would see Ukraine’s allies issue $50B in bonds through a special fund that would be financed by the proceeds.

G7 officials privately stated that the full confiscation of Russian assets is no longer being discussed.

Instead, Ukraine has created a separate subgroup that will deal with confiscating Russian assets abroad.