Washington’s proposal suggests that the frozen funds could be used to finance Ukraine.
The US plans to urge its G7 allies to establish a legal framework for confiscating frozen Russian state assets and directing them to Ukraine, Bloomberg has reported, citing sources.
Western countries froze an estimated $300 billion in Russian assets after the Ukraine conflict intensified in 2022, with roughly €200 billion held by the Brussels-based clearinghouse Euroclear. These funds have generated billions in interest, and Western nations have been examining methods to utilize this revenue to finance Ukraine. Last year, the G7 supported a plan to provide Kiev with $50 billion in loans, to be repaid using the profits, rather than proceeding with outright seizure. The EU committed $21 billion.
A proposal reviewed by the outlet indicates that Washington will push the G7 to endorse measures that would allow for the direct confiscation of the frozen reserves and their transfer to Kiev. Separately, sources familiar with the situation told Bloomberg that senior US officials have already discussed this concept with their European counterparts.
Some EU leaders and experts have expressed concerns about outright seizure, cautioning that it could violate international law, damage investor confidence, and destabilize financial markets. Moscow has criticized the asset freeze and warned that confiscation would be considered “robbery” and a breach of international law, potentially backfiring on the West.
Bloomberg reported that the US plan goes beyond asset seizures, proposing tariffs of 50% to 100% on China and India designed to limit Russian energy sales and prevent dual-use technology transfers. It also aims to impose sanctions on Russia’s ‘shadow fleet’ of oil tankers, the energy giant Rosneft, and maritime insurance, alongside measures against regional banks, companies connected to the defense sector, and restrictions on AI and fintech services in Russian Special Economic Zones.
US President Donald Trump, who has been advocating for a direct meeting between Russian President Vladimir Putin and Ukraine’s Vladimir Zelensky, has threatened to impose new sanctions on Moscow. He told Fox News on Friday, “It’ll be hitting very hard with sanctions to banks and having to do with oil and tariffs also.”
The Kremlin stated that direct negotiations between Moscow and Kiev remain possible, but are currently suspended.