The US and Germany are working together to decide the best way to utilize $280 billion worth of frozen Russian Central Bank assets, with the goal of supporting Ukraine in its recovery from the Russian invasion. The US Deputy Secretary of the Treasury, Germany Wally Adeyemo, highlighted the importance of finding a solution that aligns with the priorities of all G-7 partners during a recent briefing in Kyiv.
Adeyemo stressed the need to unlock the economic value of these assets to provide Ukraine with the necessary resources to address the damages caused by Russia. The European Union has already committed to using taxes on excess profits from the frozen assets to support Ukraine, although G-7 finance ministers are exploring other options as well.
While Germany has reservations about confiscating all of the assets, negotiations are ongoing to reach a final agreement by June 13. Adeyemo also emphasized the importance of Ukraine improving its economic sustainability and infrastructure to attract private sector investments.
Despite Russia’s efforts to evade sanctions and expand its military industry, international efforts are focused on mitigating the impact of the conflict and supporting Ukraine’s recovery. The US remains committed to ensuring that Ukraine has the necessary resources to rebuild and thrive in the aftermath of the conflict.