G7 vows to keep Russian assets frozen until Kremlin ends war and pays for damages

The Group of Seven (G7), a coalition of the world’s most advanced industrialized democracies, has reaffirmed its commitment to maintaining sanctions against Russia by pledging to keep Russian state assets frozen until Moscow ends its war against Ukraine and compensates for the destruction it has caused.

This commitment was formalized in a joint statement issued by the finance ministers and central bank governors of G7 countries – Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States – following their summit in Canada on May 20-22.

The G7 statement reiterated the group’s strong condemnation of Russia’s full-scale invasion of Ukraine, which they previously characterized in 2023 as an “illegal, unjustifiable, and unprovoked” act of aggression. 

This year’s joint communique and the language contained therein was reportedly more measured, with the The New York Times noting “some initial resistance from the United States.” 

“The language about Russia in the statement had a softer tone compared with a year ago,” the outlet said. 

The G7 reiterated its unwavering support for Ukraine’s territorial integrity, sovereignty, and right to exist, as well as its efforts toward achieving a just and lasting peace.

“We welcome ongoing efforts to achieve a ceasefire,” the statement reads. “If such a ceasefire is not agreed, we will continue to explore all possible options, including options to maximize pressure such as further ramping up sanctions.”

The group also reaffirmed its commitment to Ukraine’s post-war recovery, promising to help restore investor confidence through joint bilateral and multilateral initiatives.

In addition to continued support via the MIGA SURE trust fund (Support for Ukraine’s Reconstruction and Economy), G7 members will cooperate with the Ukrainian government, international financial institutions, and the insurance sector through the Ukraine Donor Platform to lift existing restrictions on Ukraine as swiftly as possible.

“Further,” the statement adds, “we agree to work together with Ukraine to ensure that no countries or entities, or entities from those countries that financed or supplied the Russian war machine will be eligible to profit from Ukraine’s reconstruction.”