Russia plans on confiscating income from frozen Western assets
Date
11/6/2024 7:35:51 AM
(MENAFN) Russia will retaliate against the West’s use of income generated from its frozen central-bank reserves, Finance Minister Anton Siluanov announced. Since the start of the Ukraine conflict in February 2022, Western nations have blocked approximately $300 billion in Russian assets. A large portion, around €197 billion ($213 billion), is held at Euroclear in Brussels. Recently, the U.S. declared plans to use the proceeds from these frozen assets to help repay a multibillion-dollar loan to Ukraine.
Siluanov stated that Russia would adopt similar measures, utilizing income from the assets frozen from "unfriendly" companies for its own economic needs. The funds will be allocated to support Russia’s economy and regional projects.
The U.S. plans to use the $20 billion in earnings from the frozen Russian assets as part of a broader $50 billion package to assist Ukraine, with no direct cost to American taxpayers. Similarly, the European Parliament has approved a €35 billion loan to Ukraine, backed by frozen Russian assets.
Russia has consistently warned that the seizure of its reserves is illegal, calling it “theft” that violates international law and damages the global financial system. The IMF has expressed concerns that such actions could erode trust in Western financial systems.
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