IMF cautions West from confiscating Russia`s cash
Date
5/20/2024 8:22:20 AM
(MENAFN) The International Monetary Fund (IMF) has raised concerns over Western proposals to either confiscate Russia's frozen central bank reserves directly or utilize the profits generated by these assets. The IMF has cautioned that such actions could potentially disrupt the global monetary system.
Since the onset of the Ukraine conflict in February 2022, Western nations, including the United States, United Kingdom, and various European Union states, have collectively frozen an estimated USD300 billion in assets belonging to the Russian central bank. While some countries, notably the United States and certain European Union members, have advocated for using these assets to finance Ukraine's defense and reconstruction efforts, others, such as France and Germany, have opposed such measures. They argue that seizing these assets could establish a dangerous precedent and have adverse implications for the stability of the euro.
The IMF spokesperson, Julie Kozack, emphasized the importance of any actions taken to have a solid legal foundation and to avoid undermining the functioning of the international monetary system. Kozack's remarks came during a press briefing in response to questions regarding Western plans for the frozen Russian assets.
As discussions regarding the fate of the Russian funds continue, particularly within the context of the upcoming G7 ministerial meeting in Italy, the IMF underscores the necessity for any decisions to be made within appropriate legal frameworks and jurisdictions.
The IMF has repeatedly cautioned against the potential risks associated with Western proposals to seize Russian assets, highlighting the need for careful consideration of the implications of such actions on the broader international financial system.
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