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Christine Lagarde, president of the European Central Bank, has poured cold water on US-backed proposals to use more than €260bn of frozen Russian assets to finance Ukraine’s war effort, warning they risked breaking international law.

The G7 are split on what to do with €260bn worth of Russian assets put on hold by the west since Moscow launched its full-scale invasion of Ukraine in February 2022.

The US has backed the idea of confiscating the reserves in their entirety and handing them to Ukraine, an idea European officials fear could violate international law and destabilise financial markets. EU countries would prefer to only give Kyiv the profits generated by the underlying assets.

The G7 said it would continue to work on all possible avenues to make immobilized Russian assets available for the support of Ukraine, G7 officials said.

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International law shouldn't apply to the country who broke all internationals laws.