News | Global Europe 26-05-2024
US Treasury Secretary Janet Yellen said that European banks face growing risks operating in Russia and the US is looking at strengthening its secondary sanctions on banks found to be aiding transactions for Russia's war effort.
News | Global Europe 25-05-2024
President Volodymyr Zelenskyy said on Friday (24 May) that Ukrainian forces had secured "combat control" of areas where Russian troops staged an incursion this month in northern parts of Kharkiv region.
News | Global Europe 24-05-2024
Russia will identify US property, including securities, that could be used as compensation for losses sustained as a result of any seizure of frozen Russian assets in the US, according to a decree signed by President Vladimir Putin.
News | Europe's East 23-05-2024
Stresa, Italy, May 23, 2024 (AFP) - US Treasury Secretary Janet Yellen on Thursday urged G7 ministers meeting in Italy to work on "more ambitious options" to use frozen Russian assets to help Ukraine.
The ministers and central bankers from the Group of Seven world powers are meeting in Stresa, on the shores of northern Italy's Lake Maggiore, to prepare for a summit of G7 heads of state next month in Puglia.
Top of the agenda is a plan to finance crucial aid to Ukraine using the interest generated by the 300 billion euros ($325 billion) of Russian central bank assets frozen by the G7 and Europe.
The European Union took a first step in agreeing a deal this month to seize revenues from frozen Russian assets to arm Ukraine, a windfall that will reach 2.5 to three billion euros ($2.7-$3.3 billion) a year.
In a press conference before the meeting, Yellen welcomed this plan but added: "We must also continue our collective work on more ambitious options, considering all relevant risks and acting together."
She said she wanted "concrete options" to present to G7 leaders, adding: "Failure to take additional action is not an option -- not for Ukraine's future and not for the stability of our own economies and the security of our peoples."
The United States has proposed granting Ukraine, which has been fighting a Russian invasion for more than two years, up to $50 billion in loans secured by this interest.
The details of the US plan have not yet been finalised, including who would issue the debt -- the US alone or G7 countries as a whole.
But it will serve as a basis for G7 discussions, according to a Treasury source in Italy, which as G7 president this year is hosting the Stresa talks.
The US proposal is an "interesting way forward" but "any decision must have a solid legal basis", the source said.
Time is of the essence, as the slow speed of European material reaching Kyiv and the near-halt in US aid for months during wrangling in Washington have strained Ukraine's capabilities just as Russia has regained the initiative on the ground.
In addition to the United States and Italy, the G7 includes Britain, Canada, France, Germany and Japan.
- Legal issues -
Yellen had initially advocated a more radical solution -- the confiscation of the Russian assets themselves.
But European countries worried about creating a precedent in international law and the risk of serious legal disputes with Moscow.
Stresa host Giancarlo Giorgetti, Italy's economy minister, has made no secret of the complexity of the issue.
He said Rome would be an "honest mediator" in discussions but said the task was "very delicate".
In April, Moscow sent a thinly veiled warning to Italy in its capacity as G7 chair, taking "temporary" control of the Russian subsidiary of the Italian heating equipment group Ariston in retaliation for what it called "hostile actions" by Washington and its allies.
Experts warn that any further G7 action against Russia could lead to similar reprisals hitting other European companies still operating in the country.
John Kirton, director of the University of Toronto's G7 Research Group, said that tapping just the interest on Russian assets "would considerably reduce the legal problems".
"Legally, it would not be confiscating the 'assets'," he told AFP.
France on Wednesday welcomed the US plan, saying it was hoping the G7 finance ministers would reach a deal this week.
"The Americans have made proposals that fall within the framework of international law, and we are going to work on them openly and constructively," Economy Minister Bruno Le Maire said.
- China overproduction -
Yellen said the Stresa meeting would consider "additional action" against Moscow for its war in Ukraine, including to restrict its access to critical goods that support its military.
She also said the G7 ministers would discuss responses to what she called China's "overcapacity" of key green technologies such as electric vehicles, batteries and solar panels.
The US is concerned that Chinese government support is leading to more production capacity than global markets can absorb, driving cheap exports and stifling growth elsewhere.
"Overcapacity threatens the viability of firms around the world, including in emerging markets," she said.
She added: "It's critical that we and the growing numbers of countries who have identified this as a concern present a clear and united front."
News | Global Europe 23-05-2024
G7 finance ministers gather in Italy on Thursday (23 May) for a three-day meeting dominated by plans to use Russian assets to help Ukraine, as well as new sanctions on Moscow and the commercial threat posed by China.
News | Europe's East 22-05-2024
Ukrainian servicemen operating a howitzer in Kharkiv region near the Russian border work around the clock to stop an incursion by Moscow's troops, and they are finally getting the shells to do it.
News | Enlargement & Neighbourhood 21-05-2024
Several EU member states called on Tuesday (21 May) for the bloc to start membership negotiations with Ukraine and Moldova by the end of June, but several technical and political obstacles remain for the decision to be taken.
Opinion | Agrifood 21-05-2024
The agriculture ministers from Nordic-Baltic countries urge the EU to strongly support Ukraine’s ability to export its agricultural products to the EU and to world markets.
News | Global Europe 21-05-2024
Western allies are taking too long to make key decisions on military support for Ukraine, President Volodymyr Zelenskyy told Reuters in an exclusive interview in Kyiv on Monday (20 May).
News | Global Europe 19-05-2024
Even if Ukrainian forces can hold out until all the American ammunition and weapons get through to the front, the challenge ahead remains daunting, according to many of those fighting.
News | Global Europe 17-05-2024
Finance ministers from the Group of Seven major democracies meeting in Italy next week will back a EU plan to use the income from frozen Russian assets to help Ukraine's war effort, an Italian Treasury official said on Thursday (16 May).
NATO's top commander said on Thursday (16 May) he did not believe Russia's military has deployed enough troops to make a strategic breakthrough in the region around Kharkiv in northeastern Ukraine.
News | Global Europe 16-05-2024
Four Russian state media outlets will be added to the European Union's blacklist, while other measures for the 14th sanctions package against Moscow are still in the early stages of discussion following a meeting of EU ambassadors on Wednesday (15 May).
News | Europe's East 15-05-2024
Russian President Vladimir Putin, in an interview published early on Wednesday (15 May), said he backed China's plan for a peaceful settlement of the Ukraine crisis, saying Beijing had a full understanding of what lay behind the crisis.
News | Global Europe 15-05-2024
The US will stand by Ukraine until its security sovereignty is guaranteed, Secretary of State Antony Blinken pledged on Tuesday (14 May) in a visit to Kyiv, at a time when Russia is mounting fresh attacks in the country's east.
News | Elections 14-05-2024
Britain's opposition Labour Party affirmed its "ironclad" commitment to Ukraine during a visit to Kyiv on Monday (13 May) by the party's foreign and defence chiefs.
News | Global Europe 14-05-2024
US Secretary of State Antony Blinken arrived in Kyiv in the first visit to Ukraine by a senior US official since Congress passed a long-delayed $61 billion military aid package for the country last month.
News | Global Europe 13-05-2024
At least 15 people were killed and 20 injured on Sunday (12 May) when a section of a Russian apartment block collapsed after being struck by fragments of a Soviet-era missile, launched by Ukraine and shot down by Russia, Russian officials said.
News | Global Europe 12-05-2024
Fierce fighting raged into a second day on the fringes of Ukraine's northeastern Kharkiv region on Saturday (11 May) as Moscow said it had captured five villages, while Kyiv said it was repulsing the attacks and battling for control of the settlements.
News | Global Europe 11-05-2024
The United States is working around the clock to provide Ukraine with supplies to defend itself against an intensified Russian attack that could target Kharkiv, the White House said on Friday (10 May).
News | Europe's East 10-05-2024
Ukraine's parliament voted on Thursday (9 May) to sack the deputy prime minister for infrastructure and the farm minister, removing two senior officials who have held key portfolios for the wartime economy.
Ukraine's parliament voted on Thursday (9 May) to crack down on draft dodgers, as the country grapples with a serious shortage of soldiers available to fight more than two years after Russia launched its full-scale invasion.
News | Global Europe 09-05-2024
Russian missiles and drones struck nearly a dozen Ukrainian energy infrastructure facilities on Wednesday (8 May), causing serious damage at three Soviet-era thermal power plants and blackouts in multiple regions, officials said.
Interview | Europe's East 09-05-2024
Kyiv is looking for European Union funds to boost support for its domestic arms industry and tap into additional non-contracted capacities, Ukraine's Minister of Strategic Industries, Oleksandr Kamyshin, told Euractiv. "[Our] objective is to find more funds to procure from Ukrainian …