(MENAFN) In response to concerns over the possible seizure of Russian assets by the United States, Bank of Russia Governor Elvira Nabiullina offered reassurances, stating that Russia's financial stability would remain intact even in the event of such actions. Nabiullina addressed journalists on Friday, emphasizing that any potential confiscation of frozen assets, including gold and foreign exchange reserves, would not impact financial stability as these reserves have not been utilized for operations for an extended period.
The United States and its allies have already frozen approximately USD300 billion in Russian central bank assets as part of sanctions related to the conflict in Ukraine, with a significant portion held within the European Union. Recently, United States President Joe Biden signed a bill authorizing the seizure of an additional $6 billion in Russian state assets held in United States banks.
Nabiullina underscored the Bank of Russia's proactive measures to diversify its foreign exchange reserves over several years, ensuring that ongoing operations are conducted with reserves unaffected by sanctions. This strategic approach aims to mitigate potential financial stability risks, although Nabiullina stressed that there are currently no imminent threats to stability.
The White House has advocated for the confiscation of these funds to support Ukraine in its conflict with Russia. However, concerns have been raised by European Union lawmakers and G7 finance chiefs regarding the legal implications and potential destabilizing effects of such actions. European Union nations, which hold a significant portion of the frozen Russian funds, fear that any expropriation could lead to an outflow of investment and undermine the stability of the euro currency.
As tensions persist and the possibility of asset seizures looms, Russia's central bank remains vigilant in safeguarding financial stability through prudent risk management and diversification strategies. The assurances provided by Nabiullina reflect the Bank of Russia's commitment to navigating geopolitical challenges while maintaining stability in the country's financial system.
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