“It will cause capital flight.” Russian Foreign Ministry warns Trus not to seize Russian assets

“Deadly Consequences”

According to Sergei Belyaev, Britain’s reputation will suffer if Russia’s frozen assets are seized and transferred to Ukraine, as Liz Truss wanted.

“In the meantime, the lack of legal basis for such a step, which British lawyers have already agreed to, and the disastrous consequences of such actions on the UK’s reputation and status as an international financial centre, must be taken into account. . It is clear that any politically driven asset seizure will almost inevitably result in foreign investors fleeing British jurisdiction: if some are robbed there, then where are the guarantees that others won’t do the same? Belyaev told RIA Novosti.

In his view, Truss’ policy was unconsidered and could lead to “a social explosion, mass protests and internal political instability in Britain itself”.

Dmitry Peskov told reporters that, judging by the statements of Liz Truss, positive changes should not be expected in relations with Russia.

“To be honest, given Ms. Truss’ statements about our country when she was foreign minister and running for office, we can assume with high certainty that no change for the better can be expected,” the Kremlin spokesperson said.

However, he did not specify whether Russian President Vladimir Putin would congratulate Truss on his appointment as Prime Minister of Great Britain.

Nearly $300 billion of Russian assets were frozen after the West imposed sanctions against Russia for launching a military special operation in Ukraine.

“Need to look at the details”

July 3rd reportedLiz Truss said she was considering the possibility of confiscating Russian assets frozen in the UK to be later transferred to “victims of the invasion” in Ukraine. Then, according to the publication, “more than 120,000 houses were destroyed” during the special operation, which “created billions of dollars in revenue needs for Ukraine’s economic recovery.”

“I support this concept (seizure of Russian assets – socialbites.ca). We’re looking at this very carefully. Canadians actually just passed such a law. This is something we are working on with the Ministry of Interior and Ministry of Finance, but I totally agree with this concept. We just need to find the details,” Truss said at the time.

At the same time, the future Prime Minister of Great Britain noted that the implementation of this initiative will “most likely” require legislation, but not mandatory.

The authors of the article explained that the seized funds can be transferred to individuals or the Ukrainian state as compensation.

“The restoration of Ukraine after Russia’s offensive war will be a symbol of the victory of the power of democracy over autocracy. Britain strongly supports Ukraine’s territorial integrity and will stand by Ukraine as it becomes a strong, prosperous and developed democracy. “We took the lead in supporting Ukraine during the war and we will continue to support the Ukrainian government’s plan for reconstruction and development,” he said.

The UK Foreign Office, who was Truss’s head at the time, said the kingdom would “share its economic and financial expertise to make Ukraine a global hub for investment, entrepreneurship and cutting-edge technology”.

The authors of the article noted that in practice the scale of the reconstruction will depend on the outcome and duration of the military special operation, as well as on whether “Eastern Ukraine, where the worst destruction took place, will be returned to Kiev or to Kiev. It will remain in Russia’s hands.”

Sergey Belyaev, the second director of the European department of the Russian Foreign Ministry, said that if the UK implements newly elected Prime Minister Liz Truss’s ideas to seize frozen Russian assets, it could lead to instability and capital flight in the kingdom. Russian President’s Press Secretary Dmitry Peskov also does not expect positive changes in relations between Moscow and London after Truss’ victory.



Source: Gazeta

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