As the Financial Times has learned, the Group of Seven has concluded that the issue of full confiscation of Russian assets is no longer on the agenda. Members of the organisation are now actively looking for an alternative to this idea.
Ukraine may not receive all of Russia's frozen assets
Journalists point out that official Kyiv's calls for a tough decision no longer influence the G7, as it has already changed its mind.
The G7 members, who oppose the idea of total confiscation of the frozen assets of the Russian Federation, have begun to sound the alarm over the threat of setting a dangerous precedent in international law.
Importantly, US President Joe Biden's team has supported the calls for confiscation, as have Canada and some members of the UK government.
However, Japan, France, Germany, Italy - and official Brussels itself - remain very cautious, which has led to a deadlock.
The attitude of the G7 central bankers remains rather sceptical, as they are concerned about the stabilising role played by foreign exchange reserves.
Who else is blocking a positive decision on Ukraine
According to the newspaper, countries such as Indonesia and Saudi Arabia are lobbying EU capitals not to confiscate assets, fearing for the future of their own reserves held in the West.
Other governments, including the G7 countries, fear being accused of taking any steps that would constitute a violation of international law — exactly what they accuse Russia of doing, the journalists explain.
Official Washington points out that there is a legal basis for full confiscation of assets as a legitimate countermeasure to Russia's aggressive war.
According to European leaders, it is much easier for the United States to make this decision, as it owns only $5 billion of Russian state assets.
