(Bloomberg) -- Group of Seven nations will this week aim to reassure Ukraine that their support will not waver as Russia’s war against its neighbor enters its third year.

The G-7 will call on Russia to “completely” and “unconditionally withdraw its military forces” from Ukraine and will pledge to never recognize elections that Russia holds now or in future in occupied territories, according to a draft statement seen by Bloomberg. 

G-7 leaders are scheduled to hold a call with President Volodymyr Zelenskiy on Feb. 24, marking two years since Russia invaded Ukraine. The war will again be top of the G-7 agenda this year, with Italy holding the group’s presidency ahead of a leaders’ summit in June.

Kyiv’s allies will pledge to step up their military assistance as well as capacity to produce and deliver weapons just as Ukraine faces a shortage of artillery and the prospect of a prolonged stalemate on the front. Kyiv also faces uncertainty around support from its most important ally, the US, where $60 billion in assistance remain deadlocked in Congress.

In the meantime, the G-7 will welcome the European Union’s recently approved €50 billion ($54.2 billion) aid package and a commitment by Japan to provide Ukraine an additional $4.5 billion this year. The draft is subject to discussions and could change before it is released.

A spokesperson for the Italian government declined to comment.

The G-7 will impose fresh sanctions on Russia – with all allies set to release measures this week – and double down on efforts to enforce a price cap on Russian oil. It will also crack down on the Kremlin’s ability to get around trade restrictions, especially through third countries and companies. The allies will condemn North Korea for providing Russia with ballistic missiles, call on Iran to stop helping Moscow militarily and express concerns over goods used for military purposes shipped via China.

The EU’s latest sanctions, approved this week, will impose curbs on North Korea and for the first time export restrictions on companies in China.

Frozen Assets

The G-7 will reaffirm that Russian Central Bank assets will remain frozen until Moscow agrees to pay for the damage it has inflicted on Ukraine. But it will only note discussions about obtaining compensation from Russia as its members remain at odds over the possibility of using the frozen assets to do that.

The G-7, EU and Australia have blocked about €260 billion in the form of securities and cash, with more than two thirds of that immobilized in Europe.

The UK and the US have been pushing G-7 allies to seize the central bank assets outright, with Canada open to the idea, Bloomberg previously reported. The group’s European members, especially France and Germany, are currently opposed to the move over legal concerns and worries that it could damage the stability of the euro as well as set a dangerous precedent.

Separately, the EU is slowly making progress on plans to at least apply a windfall tax to the profits generated by the immobilized funds. Last year the funds enabled profits of €4.4 billion.

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The G-7 statement will also renew the allies’ commitment toward Zelenskiy’s blueprint for a just peace in line with United Nations principles such as territorial integrity and sovereignty, as well as note once again that the Kremlin hasn’t achieved its war aims.

The G-7 will also look to engage with the wider Group of 20 where many key nations in the so-called global south, including Brazil and India, have mostly remained neutral in the face of Russia’s aggression.

President Vladimir Putin has failed to achieve his goal of subduing Ukraine and Russians are paying a heavy price for his government’s reckless actions, says the draft statement. Putin “has drained its resources to fund an unnecessary war, torn Russian families apart, and claimed hundreds of thousands of Russian lives,” it states.

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