Key Points:

• Jay Shambaugh, the US Treasury Department's top international official, will visit Rome this week (June 3-6) to discuss several pressing issues.
• Frozen Russian Assets: A primary focus will be on Russia's frozen assets with Italian officials. This discussion comes ahead of the G7 summit, where a potential plan to use these assets to aid Ukraine is expected to be addressed.
• G7 Loan Proposal: The US is proposing a loan for Ukraine backed by income generated from the frozen assets. This could provide Ukraine with up to $50 billion in critical funding.
• Developing Country Debt: Shambaugh will also address the challenge of developing country debt issues at a Vatican-led event.

Context:

• G7 leaders are meeting in southern Italy soon and are aiming to reach an agreement on utilizing the frozen Russian assets to support Ukraine.
• Seizing the assets directly has been deemed unfeasible, making the income-backed loan a leading option.
• The EU's endorsement is also necessary for the plan to proceed.

Overall:

This visit by the US Treasury official highlights the international effort to support Ukraine financially and address the broader issue of developing country debt. The discussions in Rome could pave the way for a concrete plan regarding Russia's frozen assets and provide much-needed assistance to Ukraine.