Washington has called on working groups of the Group of Seven (G7) nations to explore ways to confiscate and appropriate Russian assets amounting to hundreds of billions of dollars, the Financial Times reported.

The United States, backed by the UK, Japan, and Canada, has proposed setting up preparatory work to take more than $300 billion in Russian foreign exchange reserves that were frozen by Western countries following the start of the Russian Special Operation in Ukraine.

According to FT, the US will explore options for the expropriation process with G7 partners in the group's meeting scheduled for February 24, 2024. Earlier in December, discussions were held by G7 finance ministers and their deputies, on the development of policy regarding Russian funds, and the possible drawbacks of such action.

"The three working groups proposed by Washington would examine the legal issues around confiscation; the method of applying such a policy and mitigating risks; and options for how to best channel the support to Ukraine," the report revealed.

According to FT, the US sees such a measure as a lawful "countermeasure to induce Russia to end its aggression," although Washington has not yet publicly endorsed the expropriation of Russian assets.

The European Union holds the majority of the funds in question, totaling approximately €210 billion. According to RT, Belgium has the largest share, estimated at €191 billion, followed by France and Switzerland, a non-EU-member country, with holdings of €19 billion and €7.8 billion, respectively.

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Russia warns against US plans

Earlier on December 22, commenting on the US-led plans for Russian frozen assets, Kremlin spokesperson Dmitry Peskov warned that attempts to utilize Russian assets as funds for Ukraine will be met with consequences. 

In a statement, Peskov said, "Those who are trying to initiate this, and those who will implement it, must understand that Russia will never leave those who did this alone. And it will constantly exercise its right to legal challenge, international, national, and otherwise. And this, of course, will have — both Europeans and Americans understand this very well — it will have legal consequences for those who initiated and implemented it."

Moreover, Konstantin Kosachev, deputy speaker of Russia's upper house of parliament, said that the plan is not only unlawful but also extremely hazardous, since it may destabilize the entire global financial system.

On Telegram, Kosachev described the effort as "crazy," citing no legality to it and recalled that under international law, central banks' sovereign funds are protected by a particular immunity, and no jurisdiction is permitted to impose any form of coercion on them.

It is worth noting that the West's mobilization to curtail Russia of its funds comes after the Ukrainian counteroffensive failed to produce the intended results. The US is also facing increased pressure as it aims to source funds for the Ukrainian military and the Israeli occupation forces in occupied Palestine.

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