As Washington attempts to dispel skepticism in Western capitals, there are still thorny challenges.
In order to propose a plan to the G7 leaders summit later this week on how to use the interest from Russian frozen assets to support war-torn Ukraine, US officials are attempting to win over allies in Europe.
However, talks are still continuing on ahead of Thursday’s conference in southern Italy.
The US-led initiative has not yet won over all of Europe, according to diplomatic sources who spoke with Al Jazeera.
Related Posts
About $260 billion in Russian sovereign assets were rendered inoperable by Western allies shortly after Russia gave the order to invade neighboring Ukraine in February 2022. The majority of that money is held within the EU.
One of the options under discussion is the US proposal to lend Ukraine $50 billion. The interest on the $3.7 billion in annual income from Russian assets would be used to repay that loan. However, complex logistical and financial difficulties are involved.
Security assurances for the interest are sought after by the US. The requirement that the decision to freeze assets be unanimously renewed by all EU member states every six months heightens Washington’s concerns. In the event that any EU government opposed the plan—Hungary, for instance, because of its connections to Russia—the US would not have the funds to pay back the loan.
And who would cover the remaining balance of the loan if the warring parties sat down to negotiate and Russia was granted its assets back? Would Moscow consent to make the payment? The Group of Seven (G7) and the European Union are still working out the specifics of how to split the potential risk.
The nations of the EU are split. Diplomatic sources with knowledge of the discussions told Al Jazeera that while the EU Commission and Council are not entirely convinced, Germany and France are dubious.
Even though technical issues still need to be resolved, a third source stated that there is political desire for an agreement to be reached at the summit.
They indicated that attempts will continue to be made to find a way to signal that negotiations are ongoing in the event that these were not concluded before the end of the summit.
The US considers this to be a top priority. Jake Sullivan, national security assistant to US President Joe Biden, stated last week that “we believe it’s a priority for the entire G7.” “We hope that every nation will support a strategy that will enable us to mobilize resources for Ukraine on a large scale, giving them the tools they need to win this war.”
