Yellen responds to Putin criticizing use of seized Russian assets to support Ukraine as ‘theft’: ‘Makes no sense’

The U.S. Treasury Secretary, Janet Yellen, recently defended the plan devised by G-7 leaders to use around $280 billion of seized Russian assets to provide a $50 billion loan to support Ukraine after Russia’s invasion. Yellen explained that the majority of the frozen assets are generating income in a Belgian financial institution, and the interest accrued from these assets will be used to aid Ukraine. The G-7 leaders had agreed on this outline agreement to provide loans for Ukraine, using the interest from the frozen Russian assets.

In response to Putin’s criticism of the deal, where he called it “theft,” Yellen emphasized that there is no legal issue concerning the impounded Russian assets. She clarified that Russia’s funds are sitting in cash generating income for the institution, but Russia has no claim on this income. Yellen also mentioned that the G-7 leaders have made it clear that the assets will not be unfrozen until Russia pays for the damage caused to Ukraine. Yellen portrayed this move as a battle of wills with Putin, demonstrating the coalition’s capacity and will to support Ukraine in their fight.

The $50 billion loan provided to Ukraine will be repaid over time from the proceeds generated from the frozen Russian assets. Yellen highlighted that the G-7 coalition is determined to continue supporting Ukraine and ensuring that their economy can withstand the impact of the war. This move is crucial in showing Putin that the coalition is united and will not back down in providing resources for Ukraine to fight the war.

Despite concerns over potential legal challenges or retaliation from Russia, Yellen remained firm in her response, stating that there is no sense in which the plan amounts to theft. She emphasized that the Russian assets remain in the financial institution where they are generating income and that the loan provided to Ukraine will be repaid over time from these proceeds. Yellen also dismissed Putin’s belief that the coalition would crumble, reiterating the coalition’s commitment to supporting Ukraine and standing up to Putin’s aggression.

The G-7 leaders’ decision to use the interest accrued from the frozen Russian assets to provide aid to Ukraine has been met with criticism from Putin, who referred to it as theft. However, Yellen and the coalition members have defended the move, stating that it is a necessary step in supporting Ukraine and holding Russia accountable for its actions. The $50 billion loan provided to Ukraine will help bolster their economy and aid in their fight against Russian aggression.

In conclusion, the G-7 leaders’ agreement to use the interest from frozen Russian assets to provide a loan for Ukraine demonstrates their commitment to standing up to Putin’s aggression and supporting Ukraine in their time of need. Yellen’s firm stance against Putin’s criticism underscores the coalition’s determination to continue providing resources for Ukraine and ensuring that Russia is held accountable for its actions. This move sets a precedent for international cooperation in responding to acts of aggression and supporting countries in crisis.