Ukraine tries again to confiscate Russian assets

(MENAFN) Ukraine has renewed its efforts to confiscate the frozen Russian assets held in Western banks, particularly after Donald Trump’s reelection as US president, according to the Washington Post. Kiev is optimistic that Trump’s business experience and influence over the European Union could convince nations opposing the seizure to support the move.

Since the escalation of the Ukraine conflict in February 2022, Western countries froze approximately $300 billion in Russian central bank assets. While these funds are already being used to back a $50 billion G7 loan for Ukraine, most Western countries have refrained from outright seizing the assets. Opponents, such as Belgium, Germany, and France, worry that this could set a dangerous legal precedent and harm trust in the Western banking system.

Ukrainian officials believe that Trump could help persuade skeptical countries to change their stance. Irina Mudra, a senior official in Ukrainian President Volodymyr Zelensky’s office, expressed confidence in Trump’s ability to influence the debate, especially if he believes it aligns with US interests.

Ukraine is positioning the asset seizure as a funding source for weapons and reconstruction. Zelensky previously discussed the idea with Trump, proposing the use of the $300 billion to purchase US-made arms. Some analysts suggest that this offer could appeal to Trump, who has emphasized an “America First” approach and advocated for reducing foreign aid. However, some European countries prefer to keep the assets frozen to use as leverage in future peace talks with Russia.

Russia has condemned the freezing of its assets, with Kremlin spokesperson Dmitry Peskov warning that Moscow would pursue legal action against any attempt to use the funds for Ukraine’s benefit.

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