Moscow has issued strong warnings, threatening retaliation should European nations proceed with plans to utilize frozen Russian state assets to support Ukraine. The Kremlin consistently labels any such actions as “theft” and a violation of international law, vowing a robust response.
Moscow has issued strong warnings regarding potential retaliatory measures should European nations proceed with plans to utilize frozen Russian state assets to support Ukraine. The Kremlin has consistently labeled any such actions as “theft” and a violation of international law, vowing a robust response.
The discussions among Western allies, particularly within the Group of Seven (G7), have intensified recently, focusing on various mechanisms to deploy approximately $300 billion in Russian sovereign assets frozen since the full-scale invasion of Ukraine in February 2022. The majority of these assets are held in European financial institutions, predominantly at Euroclear in Belgium.
Proposals for Asset Utilization
Several proposals are under consideration, ranging from outright confiscation of the assets to utilizing the interest generated from them, or using the assets as collateral for a large loan to Ukraine. The latter option has gained traction ahead of upcoming international summits, aiming to provide Ukraine with immediate and substantial financial assistance.
However, the legal complexities and potential implications for global financial stability remain significant points of debate among G7 members. While the United States has largely supported more aggressive use of the assets, some European countries, notably Germany and France, have expressed caution regarding the legality and potential precedent such a move could set.
Moscow’s Firm Stance
Russia has repeatedly made it clear that it views any attempt to seize or leverage its frozen assets as an illegal act of aggression. Kremlin officials have threatened a “mirror” or “asymmetrical” response, indicating that Western assets currently within Russia could become targets for seizure.
“Any attempts to confiscate our assets will be met with a decisive and commensurate response,” stated Dmitry Peskov, the Kremlin spokesperson, in a recent briefing. “This is nothing less than expropriation, and we will defend our interests using all available legal and political means, including retaliatory seizure of Western properties and funds in Russia.”
The Russian Foreign Ministry has also warned that such actions would undermine international law and trust in the global financial system, potentially deterring other nations from holding reserves in Western currencies and institutions.
“The West must understand that this is a dangerous game that will have severe consequences for its own economic interests,” said Maria Zakharova, spokeswoman for the Russian Foreign Ministry. “We have a significant amount of Western assets, both private and state-owned, within our jurisdiction. Those who initiate these illegal actions will be the first to suffer the repercussions.”
The prospect of Russian retaliation has added another layer of complexity to the ongoing discussions among Western leaders as they seek to provide long-term financial support for Ukraine’s defense and reconstruction efforts while navigating the potential economic and geopolitical fallout.
Source: Read the original article here.
