The Kremlin warned Western powers on Monday against using frozen Russian assets as collateral for funding Ukraine, stating that such actions would be illegal and undermine the entire global economic system. This statement by Kremlin spokesperson Dmitry Peskov was in response to a Bloomberg report discussing a G7 and EU plan to use over $250 billion of frozen Russian Central Bank assets to help finance Ukraine’s reconstruction, as reported by Reuters.
According to informed sources cited in the report, the G7 is in discussions with the EU about this plan. Italy, which is chairing the G7 this year, aims to counter the growing perception that Russia is prevailing in Ukraine and that the West is growing weary of the war. Italy will host the G7 summit in June, which includes the United States, Japan, Germany, Britain, France, and Canada.
On the EU side, European Council President Charles Michel announced last Thursday that all 27 EU member states had agreed on an additional support package of 50 billion euros ($54 billion) for Ukraine, ensuring stable, long-term, and predictable funding for the country, shared via the “X” platform.
The recent war between Ukraine and Russia, which escalated with Russia’s full-scale invasion on February 24, 2022, has marked a significant period of conflict in Europe since World War II. The invasion targeted Ukrainian military assets and cities across the country, leading to widespread international condemnation. The United Nations General Assembly saw 141 of 193 member states voting to condemn Russia’s actions, demanding an immediate withdrawal from Ukraine. This event has deepened the geopolitical rift between major world powers, with many viewing the war as a manifestation of renewed geopolitical rivalry.
The conflict has its roots in the complex history between the two nations, with Ukraine’s westward drift since gaining independence being countered by Russia’s influence. The war has caused significant damage to Ukrainian infrastructure, including military assets, urban residential areas, communication, and transportation systems, with hospitals and residential complexes also sustaining attacks. Despite initial advances, Russia announced a reduction in military activity near Kyiv and Chernihiv in late March 2022 and withdrew all troops from Ukraine’s capital region by April 6. However, the conflict resumed with a new major offensive by Russia in eastern Ukraine in April 2022, leading to the capture of Mariupol and other strategic areas.
The fighting has been largely confined to Ukraine’s east and south since the summer of 2022, with the conflict causing a significant humanitarian crisis and exacerbating a global food crisis due to Ukraine’s role as a major supplier of commodities. The war has also raised international concerns about the potential for a nuclear disaster at the Zaporizhzhia nuclear plant, which was seized by Russian forces early in the conflict.
