Yellen Urges G7 to Seize Russian Assets for Ukraine Reconstruction

U.S. Treasury Secretary Janet Yellen has called on the Group of Seven (G7) nations to confiscate Russian assets and use them to fund the rebuilding of Ukraine. Yellen made the proposal during a meeting of G7 finance ministers and central bank governors in Washington, D.C. on Monday.

The move comes as the international community seeks ways to hold Russia accountable for its ongoing invasion of Ukraine, which has caused widespread destruction and displacement . Yellen argued that seizing Russian assets, including those held by sanctioned individuals and entities, would not only punish Russia but also provide much-needed resources for Ukraine's recovery.

"We must ensure that Russia pays for the damage it has caused," Yellen said in her remarks to the G7. "By seizing Russian assets, we can both hold Russia accountable and support Ukraine's reconstruction efforts ."

The proposal has gained traction among some G7 members, with countries like Canada and the United Kingdom expressing support for the idea. However, others have raised concerns about the legal and practical challenges of seizing assets, particularly those held in foreign jurisdictions.

Why this matters: The seizure of Russian assets by the G7 could have significant implications for the ongoing conflict in Ukraine and the global financial system. It would mark a major escalation in the economic pressure on Russia and provide a substantial source of funding for Ukraine's rebuilding efforts .

Yellen acknowledged these challenges but stressed the importance of taking decisive action. "We must be creative and bold in our approach," she said. "The international community has a responsibility to support Ukraine and hold Russia accountable for its actions."

Key Takeaways

• Yellen calls on G7 to seize Russian assets to fund Ukraine's rebuilding.
• Seizing assets would punish Russia and provide resources for Ukraine's recovery.
• Proposal gains traction, but legal and practical challenges remain.
• Seizure of Russian assets could have significant implications for the conflict.
• G7 to continue discussions on the proposal in the coming days.