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flag U.S. blocks EU plan to use frozen Russian assets for Ukraine reparations, citing financial risks, splitting the G7.

flag The U.S. has told G7 allies it won’t back the EU’s plan to use frozen Russian assets—worth about €170 billion—for a €140 billion reparations loan to Ukraine, citing risks to global financial stability. flag While the EU, UK, and Canada support the idea, Japan aligns with the U.S., leaving the G7 divided. flag Hungary warns the move could violate international law, damage trust in European finance, and trigger retaliation. flag The IMF and others caution it may destabilize markets, though Western nations have already used interest from the frozen funds to aid Ukraine. flag No consensus has been reached.

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