Yellen: Moves to unlock value of frozen Russian assets 'necessary and urgent'

SAO PAULO (Reuters) – U.S. Treasury Secretary Janet Yellen emphasized the urgency of unlocking $285 billion in frozen Russian assets to assist Ukraine, stating that it could encourage Moscow to engage in peace negotiations. The assets were seized by the U.S., the European Union, Japan, and Canada in 2022 to support Ukraine, which requires an estimated $486 billion for reconstruction. Some European nations have expressed concerns about the implications of confiscating Russian assets.

Yellen, speaking ahead of meetings with G7 and G20 counterparts in Sao Paulo, asserted that there is a solid legal, economic, and moral justification for taking action. She believes that releasing the immobilized assets would send a strong message to Russia regarding global stability, and potentially compel them to seek a peaceful resolution with Ukraine.

British Prime Minister Rishi Sunak recently called for more assertive measures in seizing Russian assets to address Ukraine’s need for essential military resources. Yellen affirmed that the U.S. and its G7 allies, who implemented sanctions on numerous Russian entities, will continue to impede Russia’s ability to fund its military operations.

Yellen pointed out that Putin’s strategy relies on the belief that time is on his side, anticipating that Ukraine and its allies will eventually tire. She stressed the importance of disproving this assumption and demonstrating unwavering support for Ukraine until a resolution is reached.

While commending the EU’s initial steps to utilize windfall profits from Russian assets, Yellen urged for further actions to be taken. The EU and G7 have been deliberating for over a year on how to utilize these funds, with the majority being held by Belgium’s Euroclear.

The ongoing discussions have gained prominence as President Biden faces challenges in securing additional aid for Ukraine from the U.S. House of Representatives. Yellen reiterated the need for the House to act swiftly in approving the proposed $61 billion aid package.

In conclusion, Yellen emphasized the importance of collective action in addressing the crisis in Ukraine and standing firm against Russian aggression. She highlighted the need to leverage Russian assets effectively to support Ukraine and pressure Russia towards a peaceful resolution.

The international community faces a critical juncture in handling the conflict, with decisions regarding Russian assets playing a pivotal role in shaping the outcome of the crisis. Yellen’s remarks signal a unified front among G7 nations in addressing the ongoing conflict and supporting Ukraine in their time of need.

The outcome of the meetings in Sao Paulo and subsequent actions taken by the U.S. and its allies will have significant implications for the future of Ukrainian sovereignty and global security. Yellen’s call for decisive measures underscores the gravity of the situation and the necessity for swift and coordinated international responses.

It remains to be seen how the debate over Russian assets will unfold and whether new strategies will be implemented to further support Ukraine and pressure Russia towards a peaceful resolution. Yellen’s statements reflect a sense of urgency and determination to address the crisis and provide vital assistance to Ukraine in their struggle for stability and security.

Authorities anticipate continued diplomatic efforts and strategic decisions in the coming weeks as the international community navigates the complexities of the conflict and works towards a sustainable resolution in Ukraine.