Hopes grow of G7 deal to support Ukraine with $300bn in frozen Russian assets

Foreign ministers confident of agreement to use bank assets as security for Ukraine reconstruction loan

Hopes of a multi-country deal to use $300bn of Russian state assets frozen in the European banking system to support Ukraine have grown after it emerged that G7 ministers were confident of overcoming technical and political obstacles at a meeting in northern Italy on Saturday.

The Canadian finance minister, Chrystia Freeland, said she was optimistic that G7 leaders would reach an agreement, as support coalesced around a plan to use frozen Russian central bank assets as security for a $50bn (£39bn) loan.