At a press conference following a G7 summit in Italy, Italian Prime Minister Giorgia Meloni stated on Saturday that the release of Russian assets frozen in Western jurisdictions will be contingent upon the commencement of a peace process in Ukraine. 

She further mentioned that the forthcoming discussions would address financial contributions toward Ukraine's reconstruction efforts.

"It is clear that since the assets were frozen due to sanctions and since the sanctions are actually related to aggression against Ukraine, the possibility of unfreezing will only be possible in the event of a peace process. But I assume that this peace process will also discuss the issue of who should pay for Ukraine's reconstruction," Meloni said.

The backing of Ukraine by G7 nations is essential for achieving any diplomatic resolution to the Ukraine conflict, Meloni noted, adding that the G7's commitment to allocating $50 billion in loans to Ukraine by year-end, sourced from earnings on Russia's frozen assets, demonstrates their ongoing support for Kiev.

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Following the summit, the G7 asserted in a statement that Russia must bear responsibility for the damages inflicted on Ukraine, which have surpassed $486 billion. On Wednesday, they agreed to provide Ukraine with $50 billion by utilizing frozen Russian assets by the end of the year.

Bloomberg reported in May that the European Union agreed on a plan to utilize the income from blocked Russian sovereign assets to boost Ukraine's rehabilitation and military spending.

The International Monetary Fund (IMF) previously warned that Western plans to seize frozen Russian assets could pose a threat to the global monetary system and entail unforeseen risks.

What is Putin's peace proposal?

On Friday, Russian President Vladimir Putin announced that Russia is prepared to initiate negotiations with Ukraine under specific conditions. If Kiev and Western capitals reject this offer, as they have done in the past, they bear political and moral responsibility for the ongoing violence, he said.

Putin outlined the conditions for the proposed peace plan, stating that Ukrainian forces must withdraw entirely from the Donetsk and Lugansk People's Republics, as well as from the Zaporizhzhia and Kherson regions.

He specified that the withdrawal should cover the entire territory of these regions within their original administrative borders before they became part of Ukraine. Once Kiev agrees to these terms and begins withdrawing troops while also formally renouncing NATO membership plans, Russia will immediately cease fire and commence negotiations.

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Shortly after, Ukrainian President Volodymyr Zelensky told reporters that Putin's proposal echoed Russia's previous propositions, labeling it an "ultimatum".

In response to these remarks, Kremlin spokesman Dmitry Peskov clarified that the proposal is, in fact, a sincere attempt at initiating peace negotiations.

Speaking to the Izvestia newspaper, Peskov said that Putin's proposal should not be construed as an ultimatum but rather as a genuine effort towards resolving the ongoing tensions between Russia and Ukraine.

"It is surely a misunderstanding, it is exactly a peace initiative," Peskov stated.