The G7 will support the EU’s use of profits from frozen Russian assets but still refuses their confiscation.

G7 finance ministers will back an EU plan next week to use proceeds from frozen Russian assets to help Ukraine’s military efforts.

The US proposed the outright confiscation of Russian assets, but Europe refused, citing risks for the euro and possible legal repercussions. Therefore, the G7 will support the EU’s decision to only use revenue generated by these assets to benefit Ukraine and carry out preparatory work so that the G7 heads of government can formally decide the matter at their June summit.

G7 Finance ministers and central bank governors have made some progress toward reaching a consensus on a plan to harness some $300B in Russian sovereign assets that have been frozen by Kyiv’s allies.

In addition, US Treasury Secretary Janet Yellen said that a plan to provide Ukraine with $50B and use revenue from Russian assets as collateral for a bond is still on the table. However, the reaction from finance ministries in the G7 countries to this plan is currently cautious.