Germany supported the United States in the use of frozen Russian assets.

Germany has changed its position on the use of frozen Russian assets and now supports the US proposal to use them to finance Ukraine, Bloomberg writes, citing sources familiar with the negotiations.

Germany's agreement could be a turning point in a protracted discussion, after which the EU will agree to a new plan to help Kyiv and ensure the participation of the United States in it regardless of the outcome of the elections in November 2024. It refers to about $50 billion in revenues from the frozen $300 billion.

The latest U.S. proposal has been received more positively in European capitals, including Berlin, because it involves simply using asset-generated interest without confiscating the principal, officials said. EU countries have already agreed to use this revenue stream, taxing it at almost 100%, and to transfer these revenues to Ukraine twice a year. The G-7 agreement will replace this agreement.

Earlier, the United States offered to spend the frozen russian assets themselves to help Ukraine. The EU has just approved the use of revenues from them. According to the new regulations, 90% of the income received will be sent to Ukraine. They can be used both for reconstruction and for military purposes. The depositories will temporarily withhold the remaining 10% in case of their own risks.

The EU does not intend to transfer income from frozen assets to russia even after lifting of the sanctions.

European officials are not ready to confiscate the assets themselves, seeing this as a violation of international law. The United States, unlike the EU, would like to spend the frozen assets themselves, the House of Representatives in April already approved a bill that allows Ukraine to send about $6 billion of the frozen $300 billion in reserves.

The decision may be made at the G7 summit in Brindisi, Italy, on June 13-15.

Read more

@freerussia_report