Western usage of interest from Russia’s frozen assets is deemed theft

(MENAFN) The West’s use of interest generated from Russia’s frozen assets amounts to outright theft, according to Andrey Kostin, CEO of Russian banking giant VTB. Speaking to RT on the sidelines of the St. Petersburg International Economic Forum, Kostin criticized the EU and other Western nations for what he described as “dangerous” actions that could eventually backfire on them.

Following the escalation of the Ukraine conflict in February 2022, Western countries froze around $300 billion of Russia’s sovereign assets, with about $213 billion held at Belgium’s Euroclear settlement house. Kostin warned that such measures could easily be turned against the West in the future.

Kostin emphasized that using the proceeds from these frozen funds—reportedly being directed toward supplying Ukraine with military aid—is illegal and constitutes theft. He noted that despite ongoing discussions in the West about fully seizing the frozen assets, no legal grounds exist to do so.

“This is theft. They’re using the interest now, but the interest belongs to the owner just as much as the principal does,” he said.

Moscow has repeatedly condemned these measures and hinted at retaliating by using the assets and interest of “unfriendly” nations held within Russia for its own purposes. Finance Minister Anton Siluanov previously warned that Russia might adopt such steps if the West continued its course.

Kostin has also expressed skepticism about Russia ever recovering these frozen assets, suggesting they will likely be used under the guise of funding Ukraine’s post-war reconstruction, with the final bill potentially far exceeding the amount frozen.

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