(MENAFN) The Kremlin has issued a stern warning to Western nations, cautioning against the potential seizure of Russia's frozen assets, citing concerns over the destabilization of the international financial system. Kremlin Press Secretary Dmitry Peskov emphasized the significance of maintaining trust among international investors in the Western financial system, warning of the dire consequences of undermining this trust.
The statement comes in response to the ongoing sanctions imposed by the United States and its allies on Russia over the Ukraine conflict, which have led to the blocking of approximately USD300 billion in Russian central bank assets, primarily held in the European Union. While the United States has argued that international law allows for the appropriation of these funds, Germany and France have expressed reservations, fearing negative repercussions for the Western financial system.
Recent developments, including the signing of a bill by United States President Joe Biden permitting the seizure of USD6 billion in Russian state assets held in American banks, have heightened tensions further. Peskov stressed that while it is premature to discuss the confiscation of the entire USD300 billion, Russia stands prepared to take retaliatory measures if necessary.
Furthermore, Peskov underscored the potential ramifications of such actions, warning that seizing Russian assets would set a dangerous precedent and erode trust in Western financial institutions. He cautioned that foreign investors may reconsider keeping their funds in Western banks if such actions were taken, thereby jeopardizing the reliability of the entire Western financial system.
In light of these concerns, Peskov emphasized the critical importance of thoughtful decision-making, highlighting the fragility of trust in financial systems and the considerable effort required to restore it once lost. The Kremlin's warning serves as a reminder of the far-reaching implications of actions taken in the realm of international finance.
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