Portugal's Finance Minister Fernando Sarmento has called for urgent international agreement on the utilization of frozen Russian assets, stressing that a coordinated resolution is essential to stabilize global financial markets and support Ukraine’s reconstruction. The move comes as mounting pressure grows on Western nations to unlock billions in blocked funds.
- Approximately $300 billion in Russian sovereign assets are currently frozen across Western financial institutions.
- Portugal's Finance Minister Fernando Sarmento has called for a binding multilateral agreement to govern the use of these funds.
- The proposed framework aims to direct proceeds toward Ukraine’s reconstruction and global financial stability.
- Decisions remain stalled due to disagreements over governance, legal jurisdiction, and distribution mechanisms.
- A failure to agree could undermine confidence in the integrity of international financial systems.
- The European Commission has previously proposed a mechanism to channel up to 30% of proceeds to Ukraine, but consensus remains elusive.
Finance Minister Fernando Sarmento of Portugal has reiterated that reaching a binding international agreement on the management of frozen Russian sovereign assets is no longer optional but a necessity. Speaking at a high-level economic forum in Lisbon, Sarmento emphasized the need for a transparent, multilateral framework to determine how approximately $300 billion in assets—held in Western banks and sovereign reserves—should be reallocated. These assets, frozen since early 2022 following Russia’s invasion of Ukraine, remain a point of contention among G7 and EU members.