US urges aid to Ukraine, united front against Chinese trade practices during G7 financial meeting

Frankfurt, Germany — The US sought to build support to squeeze more money for Ukraine from frozen Russian assets and to unite against China's trade practices, as finance ministers from the Group of Seven wealthy democracies opened a two-day meeting on Friday on the shores of the picturesque Lago in Northern Italy. Maggiore.

US Treasury Secretary Janet Yellen urges 'more ambitious options' at meeting in Stresa to free up money from some $260 billion in Russian central bank reserves frozen in Europe and the US after the invasion of February 24, 2022.

Aid to Ukraine has become more urgent as Kiev's finances appear shakier given the prospect of the conflict continuing next year and beyond, and as Russia steps up its destruction of civilian infrastructure such as power stations.

The US Congress has passed legislation allowing the Biden administration to seize the approximately $5 billion in Russian assets located in the US, but most of the funds are in Europe. Citing legal concerns, European officials have argued against seizing the money outright and handing it over to Ukraine as compensation for the destruction caused by Russia. Instead, they plan to use the interest on the assets, but that is only about $3 billion per year – about one month of financing needs for the Ukrainian government.

Proposals include borrowing against the future interest income from the frozen assets, so that Ukraine could get as much as $50 billion immediately.

Host country Finance Minister Giancarlo Giorgetti said extracting Ukraine “is a very complicated discussion legally, but also politically sensitive.”

French Finance Minister Bruno Le Maire praised Yellen for setting aside a proposal that he said would have undermined the international rule of law, adding that “the US proposal now complies with international law.”

“Let's compare the proposals, let's see what is the most convenient, the most efficient and the fastest proposal that can be implemented,” he said. “The most important point is not the method we use, the most important point is to ensure proper, strong and long-term financing of the Ukrainian government.”

Ukraine spends almost all its tax revenue on the military and needs another $40 billion a year to continue paying the pensions and salaries of doctors, nurses and teachers. Support from allies and a $15.4 billion loan from the International Monetary Fund were initially thought to secure the budget for four years, but the prospects of a protracted conflict have made the outlook for next year bleaker.

Yellen has also called for a clear united front against Chinese state subsidies for the production of solar panels, semiconductors and electric cars, arguing that China's manufacturing capacity exceeds not only its needs, but also those of the global economy as a whole, and threatens the existence of competing countries. companies in both the Group of Seven and developing countries. Ahead of the meeting, she said countries must take a common position so that Chinese leaders understand that “they face a wall of opposition to this strategy that they are pursuing.”

Finance ministers are working on final decisions at the G7 leaders' summit that will take place from June 13 to 15 in Fasano, in the southern Italian region of Apulia.

The G7 is an informal forum that holds an annual summit to discuss economic policy and security issues. The member states are Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. Representatives of the European Union also participate, but the EU does not serve as one of the rotating chairs.

Related Posts

  • Business
  • June 17, 2024
  • 3 views
  • 2 minutes Read
Approximately 100,000 pet insurance policies are being canceled nationwide

Is pet insurance worth it? Is pet insurance worth it? 07:55 Nationwide will cancel coverage for about 100,000 animals nationwide, with the nation's largest pet insurance provider citing the rising…

  • Business
  • June 17, 2024
  • 3 views
  • 4 minutes Read
The FDA approves Merck's pneumococcal vaccine, intended for adults

Zoom in iconArrows pointing outwards Merck's new pneumococcal vaccine. Courtesy: Merck The Food and Drug Administration announced this on Monday approved Merck's new vaccine designed to protect adults against a…

Leave a Reply

Your email address will not be published. Required fields are marked *

You Missed

The European election results raise fears about the weakening of climate ambitions

  • June 18, 2024
The European election results raise fears about the weakening of climate ambitions

Kansas is suing Pfizer for 'misleading statements' about its COVID vaccine

  • June 18, 2024
Kansas is suing Pfizer for 'misleading statements' about its COVID vaccine

Remco Evenepoel: The Tour de France contender who might have played for Belgium at Euro 2024

  • June 18, 2024
Remco Evenepoel: The Tour de France contender who might have played for Belgium at Euro 2024

Juneteenth Hack brings together black artists with augmented reality technology

  • June 18, 2024
Juneteenth Hack brings together black artists with augmented reality technology

The 2024 Summer Olympics in Paris could break heat records. Does this put athletes at risk?

  • June 18, 2024
The 2024 Summer Olympics in Paris could break heat records.  Does this put athletes at risk?

James Webb telescope helps improve technology

  • June 18, 2024
James Webb telescope helps improve technology

Kylian Mbappe broke his nose during France's 2024 Euro 2024 victory over Austria and may need surgery, reports say

  • June 18, 2024
Kylian Mbappe broke his nose during France's 2024 Euro 2024 victory over Austria and may need surgery, reports say

Approximately 100,000 pet insurance policies are being canceled nationwide

  • June 17, 2024
Approximately 100,000 pet insurance policies are being canceled nationwide

Here are our recommendations for the best 2024 nonfiction books : NPR

  • June 17, 2024
Here are our recommendations for the best 2024 nonfiction books : NPR

Maryland pardons 175,000 people for cannabis convictions

  • June 17, 2024
Maryland pardons 175,000 people for cannabis convictions

US Secret Service member robbed at gunpoint in California during Biden trip

  • June 17, 2024
US Secret Service member robbed at gunpoint in California during Biden trip