Finance ministers will debate legality of using €270bn in frozen state assets as collateral for loan

Divisions over whether Ukraine can lawfully be handed an extra €30bn (£26bn) loan drawn from €270bn in seized Russian state assets are likely to be aired at a meeting of G7 finance ministers this week in Stresa, northern Italy.

In another test of political will over Ukraine, the US has been canvassing support for the plan, with the money intended to help with Ukraine’s reconstruction or pay for badly needed arms.