US calls on G-7 to seize $300 billion in Russian assets to fund Ukraine defense: Report

The United States is pushing its G-7 allies to impose secondary tariffs of up to 100% on China and India over their purchases of Russian oil, aiming to pressure President Vladimir Putin into ending the war in Ukraine, Bloomberg reported citing a US proposal.

The proposal urges G-7 nations to not only target Russian energy flows but also tighten controls on dual-use technology exports that could aid Moscow’s war efforts. Tariffs between 50% and 100% are being considered, alongside broad trade restrictions on imports and exports involving China and India.

In parallel, the US is also proposing a legal mechanism for the G-7 to seize immobilised Russian sovereign assets — most of which are held in Europe — and use those funds to bolster Ukraine’s defense. About $300 billion of Moscow’s assets remain frozen, with discussions underway on whether the principal itself could be redirected.

According to sources cited by Bloomberg, senior US officials have been discussing a phased approach with their European counterparts, aiming to gradually increase pressure on Russia by targeting its central bank reserves.

Canada, which currently holds the G-7 presidency, convened a finance ministers' meeting on September 12 to explore new measures designed to constrain Russia’s war capabilities and further isolate its economy.

President Donald Trump has reportedly voiced support for the plan, telling EU officials he would be willing to impose matching US tariffs on China and India — but only if Europe commits to doing the same. Trump made the remarks during a call with senior US and EU officials in Washington earlier this week.

However, consensus remains a challenge. Several EU countries, including Hungary, continue to block tougher sanctions on Russia’s energy sector, complicating any coordinated response that would require unanimous support from all member states.