The U.S. proposed G7 to confiscate $300 billion in Russian assets in December 2023. The move was implemented to crush Russia’s ability to grow stronger in the war against Ukraine. The $300 billion in Russian assets that G7 froze were in the form of bonds, cash, and other assets.
Now that G7 successfully froze $300 billion in Russian assets, where did all the money go? Who holds the major part of it and where is it held currently? In this article, we will highlight what the U.S. and G7 did with the billions worth of frozen Russian assets.
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Who Holds $300 Billion in Frozen Russian Assets: G7 or the U.S.?
Much debate was made about what to do with the $300 billion frozen Russian assets by G7 and the U.S. Once frozen, it remains clear that the money will not go back to Russia, and G7 and the U.S. will have to decide what to do with it.
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About $4 billion worth of frozen Russian assets are currently held by the U.S. in 2024. G7 and European financial institutions take the lion’s share by holding more than $200 billion worth of the confiscated assets.
Debate is now being held on whether to use the frozen funds to help rebuild Ukraine after the Russian onslaught. While Ukraine’s President Volodymyr Zelenskyy is happy with the idea, the others are not. Germany, France, Italy, and the EU have expressed reservations citing the need to carefully assess the situation.
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Russia is unhappy with the seizure of its assets and lashed out against the U.S. and the G7 alliance. The Putin administration is now looking at viable options to keep its economy afloat amid sanctions. The country has been selling crude oil at discounted prices for two years to keep the flow of funds and trade alive.