Calls are growing in the United States and Europe to establish a fund for Ukraine using billions of dollars held in bank accounts, investments and other assets that the West froze in response to the Russian military operation in 2022.

"It is necessary and urgent for our coalition to find a way to release the value of these frozen assets to support Ukraine's continued resistance and long-term reconstruction," Yellen told reporters in Sao Paulo, where she will attend a meeting of G20 finance ministers.

She added, "There is a strong international law, economic and moral case for moving forward. This will make clear that Russia cannot win by prolonging the war and will provide an incentive to push it to negotiate a just peace with Ukraine."

But the proposal carries risks, including the possibility of Russia taking legal measures, which may raise concerns in other countries such as China, which could prompt it to reduce its investments in the West for fear of being exposed to similar measures.

Regarding this, Yellen said, "I think that (financial instability) is highly unlikely, especially considering how special this situation is, as Russia is blatantly violating international standards, and a group of countries that represent half of the global economy have the potential to work together."

“We are evaluating and identifying options to consider,” she continued.

Russian response

Russian Finance Minister Anton Siluanov described the American proposal as "devastating" in statements he made to reporters in Sao Paulo.

He warned that such a step could undermine the global financial system by making countries' assets abroad vulnerable to political decisions, according to the Brazilian newspaper O Globo.