"Seizing principal is a red line for many of our G7 partners whether you use the theory of countermeasures or whether you use a legal theory of 'set off' in which Ukraine establishes a reparation claim, transfers it to the asset side of the G7 balance sheet, and we set that off against our collective liability, which are the Russian reserves," Singh said during a Brookings event in Washington. "In either path we don't have consensus as a G7."
The G7, led by the United States and the European Union, have been discussing ways to confiscate the Russian assets since the start of Russia's special military operation in February 2022.
Earlier in May, US Secretary of the Treasury Janet Yellen said she planned to urge the Group of Seven partners to collectively find a way to unlock the value of Russian sovereign assets for the benefit of Ukraine. The issue is expected to be discussed at the G7 summit in the Italian region of Apulia from June 13-15.