GlobalWide News
The Financial Times: Western nations, led by the G7, are considering the unprecedented move of seizing Russian central bank assets, estimated at around $300 billion, to support Ukraine. This consideration arises amidst challenges in securing financial aid for Ukraine, with recent failures in the US and EU to approve aid packages totaling over $100 billion. The US has been a prominent advocate for this approach, suggesting that confiscating Russian assets could be legally justified as a response to Moscow’s aggression in Ukraine.
The US Treasury has remained silent on the matter, but a US government discussion paper argues that G7 countries and those particularly affected by the conflict could legally seize Russian assets to pressure Russia to end its aggression. This viewpoint is gaining traction despite previous reluctance due to concerns about the potential flight of foreign investors from dollar and euro assets.
While EU proposals have initially focused on skimming off profits from Russian assets held in institutions like Euroclear, more assertive calls are being made to directly tap into the Russian assets. The UK, particularly through statements by Foreign Secretary Lord David Cameron, has expressed confidence in finding a legal route to asset confiscation.
The discussion reflects broader concerns about the financial burden of supporting Ukraine and the desire to hold Russia financially accountable for the war. There is a growing consensus within the G7 to use Russian assets for Ukraine’s benefit, balancing legal considerations with the urgent need to provide financial support to Ukraine.
The entire article can be read at the link https://www.ft.com/content/918645f8-e0b6-4cab-92fa-4f965569c2a6
