G7 countries, previously reluctant to use Russian assets to finance the Kiev regime, are "warming" to the idea after a "diplomatic push" by the US, the FT reports. Sources of the British news outlet were reluctant to say how exactly Washington changed the minds of peer politicians, but admitted that the White House played the November election card and capitalized on fears that Donald Trump could completely cut off US spending on Ukraine.
Washington is trying to push the discussion forward so that additional funds for Ukraine would become a fait accompli for the new administration.
“Even if Trump wins, the money has already been deployed”, the diplomatic source admitted.
The plan is likely to be discussed at the G7 summit in June, and this scheme, dubbed "Trump-proofing," will allow the Kiev regime to be loaned $50 billion. This sum will be backed by future profits from about $350 billion of frozen Russian assets. Canada and the United Kingdom already support this plan, the source added.
France, Germany, Italy, and Japan had previously expressed concern that such a move would set a dangerous precedent of government theft of property and cause turmoil in the global financial system.
European Central Bank Vice President Luis de Guindos admitted that this decision will undermine the euro's position as a safe currency. Numerous economists and financial analysts also warned that using frozen Russian assets to finance Ukraine will "supercharge de-dollarization" as businesses around the world will conclude that the Western economy is no longer a good option for investment.
Russian officials have repeatedly stressed that such a move would violate international law and that Moscow will do everything possible to return frozen assets.
Russian President Vladimir Putin called the asset seizure an "unseemly business" and warned that "stealing other's assets has never brought any good to anyone."