Russian Official Warns of Global Economic Fallout

(MENAFN) The decision by Western nations to freeze Russia’s sovereign holdings, as part of the sanctions imposed in response to the Ukraine war, has seriously damaged confidence in the international financial system, stated Maksim Oreshkin, the deputy chief of President Vladimir Putin’s administration.

Following the outbreak of the Ukraine crisis in February 2022, the United States and the European Union blocked access to over USD300 billion in Russian government funds.

In May, the EU authorized a strategy to redirect the earnings generated from these frozen holdings to aid Ukraine, with some countries within the bloc even advocating for full-scale seizure.

During an interview broadcast on Sunday, Oreshkin insisted that this course of action has had unintended consequences.

“This whole situation is a major blow to the Western financial system and Western countries,” he stated.

“This isn’t something that might happen - it already has. The damage is done.”

President Putin also reinforced this perspective during a recent trip to Belarus, cautioning that the “theft” of Russian state funds would drive other nations away from Western banking and economic systems.

“This shift will undoubtedly be irreversible,” he declared. “Overall, it would benefit the global economy. Perhaps it’s even worth the cost.”

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