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While the EU ambassadors conference gave green light for devolving revenues from Russian assets to Kiev yesterday, U.S. Treasury Secretary Janet Yellen in Frankfurt pushed the more radical U.S. plan to use the entire frozen assets as collateral to generate at least $50 billion loans for Ukraine. According to German media, she won’t be able to convince her G7 partners at the coming conference of Finance Ministers in Stresa, Italy, on May 25-26, and further negotiations are needed before the mid-June G7 summit in Apulia.

While in Frankfurt, Yellen threatened German banks with retaliation unless they close “the loopholes” to circumvent Russia sanctions. She also called for a coordinated response from the West to China’s industrial policy. If the U.S. and Europe do not respond strategically and together, the survival of Western companies could be jeopardized.

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