The G7 declares progress in using Russian belongings to assist Ukraine | Economy | EUROtoday

The financial ministers of the G7 group, assembly in Stresa (northern Italy) introduced this Saturday that progress has been made in utilizing the advantages of frozen Russian belongings to assist Ukraine and that they’re decided to extend sanctions. to the Eurasian big, based on the ultimate doc after the summit.

“We are advancing our discussions on four possible pathways to shift windfall profits from frozen Russian sovereign assets to the benefit of Ukraine, in accordance with international law and our respective legal systems, with a view to presenting options to provide additional financial support to Ukraine. Ukraine to our leaders before the Apulia summit in June,” the ultimate doc reads.

The economic system ministers of France, the United Kingdom, Germany, Canada, Italy, the United States and Japan additionally introduced “that, in accordance with their respective legal systems, Russia's sovereign assets will remain frozen until Russia pays for the damage it has caused.” to Ukraine.” However, throughout this assembly, by which the Minister of Finance of Ukraine, Serhiy Marchenko, participated, no settlement was reached on the attainable authorized framework or the quantity to allocate and any resolution was postponed to the G7 of heads of state and Government.

The company already froze about $300 billion in Russian belongings — most of them in Europe — shortly after Moscow invaded its neighbor in February 2022.

The United States would have proposed utilizing the advantages of frozen Russian belongings via a mortgage. However, because the Italian Minister of Economy, Giancarlo Giorgetti, introduced within the press convention after the G7 assembly, there are nonetheless “technical and legal” features to handle for a last settlement.

The entity that brings collectively the G7 Economy assured that monetary and financial sanctions “are already having a clear impact by restricting Russia's ability to finance and support its illegal invasion of Ukraine” and reiterated the dedication “to use extra monetary sanctions and financial measures to scale back Russia's sources of income and its means to wage battle in opposition to Ukraine, together with by persevering with to focus on Russia's power revenues and future extractive capabilities.”

The text adds that, where appropriate, they are “willing to impose sanctions on individuals and entities that help Russia acquire advanced materials, technology and equipment for its military industrial base.” The document also “strongly condemns the growing military cooperation between North Korea and Russia” and calls on Iran “to stop aiding the Russian military and its war against Ukraine,” while expressing concern “for transfers to Russia from companies around the world, including those in China, of dual-use materials and components for weapons and equipment for military production.”

Global tax on multinationals

On the other hand, the G7 Economy Ministers did not reach any conclusion on the application of the so-called global tax on multinationals and the Italian Economy Minister, Giancarlo Giorgetti, who chaired the summit, explained that “it is at a standstill.”

“It is undeniable that there are different points of view on how to address this matter and possible retaliation. But we are almost at a stalemate, although we must nourish hope,” Giorgetti admitted at the final press conference of the meeting, which was held in the northern Italian town of Stresa, on the shores of Lake Maggiore.

The minister spoke of the reservations of China and India and admitted that “there’s a danger of not assembly the June deadline” to apply the proposal promoted by the Organization for Economic Cooperation and Development (OECD) of a tax on 15% with respect to the gross income of international corporations on the activity they carry out in each country.

The final document mentions only congratulations “that an increasing number of countries have implemented or begun to implement the implementation of the Second Pillar (of the global tax) in their national legislation and we support the ongoing work to ensure consistent implementation ”.

Concern about China

Additionally, G7 finance ministers expressed concern about China's overproduction and “non-market practices” and considered taking action, according to the final document released after the meeting.

“While we reaffirm our interest in balanced and reciprocal collaboration, we express our concern about China's use of non-market policies and practices that undermine our workers, industries and economic resilience,” reads the document signed by the seven most industrialized democracies.

They conclude that they will “continue to monitor the potential negative impacts of overcapacity and consider taking measures to ensure a level playing field, in line with the principles of the World Trade Organization (WTO).”

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