"We must continue to consider all options and ultimately find one that is acceptable to the G7 as a whole," said Adeyemo.
He noted that out of the more than $280 billion in Russian assets currently held in the West, only about $5 billion are under U.S. jurisdiction. It is therefore crucial to find a solution that works for all countries involved.
According to Adeyemo, support is growing for the idea of making use of a larger portion of Russia's sovereign assets, potentially increasing revenue from a windfall profits tax already defined by the European Union.
Read also: Euroclear considers using frozen Russian asset income to aid Ukraine
He noted that the EU had previously decided that, based on the funds held by Euroclear, they could "take the income earned from investing those funds and transfer those profits to Ukraine."
“We are considering, among other things, the idea of making some kind of bond or collateral mechanism, instead of just taking one year worth of profit and sending it to Ukraine,” Adeyemo continued.
“This would allow us to extract more of these revenues and provide them to Ukraine for investment in their economy and to enhance their defense [referring to providing Ukraine with a loan worth about $50 billion secured by future earnings from Russian assets].”
With several alternative plans on how to proceed, the official reiterated the need to ensure that there are proposals that the United States can present to G7 partners to obtain "political direction on how we can best unlock" these frozen Russian assets after the upcoming G7 meeting.
Representatives of G7 countries are set to gather in southern Italy on June 13.
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Read the original article on The New Voice of Ukraine
Section: Nation
Author: Eric Malinowski
