US Treasury Secretary Janet Yellen has urged European allies to collaborate with the United States to unlock approximately $280 billion worth of frozen Russian assets.

Yellen emphasised the urgency of unlocking the frozen Russian assets, highlighting their importance in providing sustained financial support to Ukraine.

She made these remarks ahead of a speech on the transatlantic alliance, underscoring the need for collective action to address the ongoing crisis in Ukraine.

According to Bloomberg, US Treasury Secretary Janet Yellen stressed the immediate need for collaborative efforts to unlock the value of Russian sovereign assets frozen in various jurisdictions, aiming to benefit Ukraine.

The United States has taken the lead in exploring methods to utilise these immobilised assets to support Ukraine, considering options such as direct seizure, securitisation for debt issuance, or loan backing.

However, European nations have expressed reservations, citing concerns regarding potential impacts on financial stability, the role of the euro, and legal risks.

Most of the frozen assets are held in European jurisdictions, underscoring the significance of European cooperation in this endeavour.

Unlocking these assets is poised to be a focal point of discussions among Group of Seven (G-7) finance ministers convening in Stresa, Italy later this week.

In addition to deliberations on financial assistance for Ukraine, the finance ministers are anticipated to assess the efficacy of collective sanctions against Russia and explore avenues to bolster the sanctions framework.

Yellen also advocated for tightening the Russia sanctions regime by addressing evasion tactics, particularly through third parties, and regulating the flow of sensitive goods originating from the US and Europe.

These measures are aimed at bolstering the impact of sanctions and sustaining pressure on Russia amid ongoing geopolitical tensions.

Image source: Business Times