If Western countries decide to seize Russian assets, other states may withdraw reserves from their jurisdiction in order to avoid repeating the fate of the Russian Federation. In this respect colon In his article for the Financial Times, columnist Martin Sandbu explained why the European Union has not yet seized the assets of Russian businesses.
According to him, the legal obstacles repeatedly announced in the European Union are a “dubious justification”. Sandbu argues that if the legal aspect of confiscation were the reason for Western countries’ hesitations, governments would do everything possible to overcome them.
“The most serious concern was that seizing Russian assets would force other non-Western countries to withdraw their reserves from the West if they were one day subject to the same sanctions,” the document said.
Moreover, the seizure decision could destabilize the global financial system, as stated in the material.
“The European Central Bank has issued a strong warning to European policymakers against taxing even EU companies that profit excessively from blocked Russian assets,” the FT writes.
The column notes that if non-Western states wanted to withdraw their assets, there was nowhere to place them except China.
“No matter how hypocritical or self-serving the West may appear to developing countries, no one believes Xi Jinping is any less willing to use financial dependence as a weapon,” Sandbu writes.
In general, according to the expert, no problems should arise in the seizure of Russian assets and he called for the matter not to be delayed. “No matter how the war ends, calls for “reasonable” treatment of Russia will suddenly increase. “There is now even more reason to confiscate its reserves,” the author argues.
Unlike the British journalist, European officials insist on legal restrictions on the seizure of Russian assets. How Wrote The New York Times, citing a confidential report by EU officials, found “no credible legal solution” for seizing assets that have been frozen simply because they are under restriction.
In this context, the European Commission has so far focused on the “safest solution”: redirecting the profits made by asset-owning European companies to the needs of Ukraine.
Money for aid to Ukraine
Russian Finance Minister Anton Siluanov in March 2022 evaluated The volume of assets frozen abroad is 300 billion dollars. US Treasury in September 2023 reportedIt is stated that approximately $280 billion of Russian assets are blocked worldwide.
Now EU officials are preparing a mechanism for using profits from assets for Ukraine’s needs.
“We have frozen €211 billion of Russian assets and currently the proceeds from them only go to selected EU financial institutions. We will soon provide recommendations on the use of proceeds. [реинвестирования] These funds will be used to assist Ukraine and support its recovery. “These funds will be sent to the European Union budget and from there will be distributed to Ukraine’s needs,” he said. spoke European Commission President Ursula von der Leyen at the last EU summit in Brussels.
The president of the European Commission said leaders of EU countries “have a common understanding” that the bloc should try to “make Russia pay for the restoration of Ukraine”.
Volodin promises a “symmetrical response”
In response, State Duma Speaker Vyacheslav Volodin said on October 29 that Russia could give a symmetrical response.
“A number of European politicians, led by European Commission President Ursula von der Leyen, who want to stay in their places and based on the poor financial situation of the states they lead, have started talking again about stealing our country. The country’s funds were frozen to continue the militarization of Kiev at all costs. “Such a decision would require a symmetrical response from the Russian Federation.” Wrote Speaker of the Russian Parliament on the Telegram channel.
In this case, Volodin believes, the “unfriendly” countries will have much larger assets confiscated than those frozen by Europe. Volodin did not specify which entities he was talking about.