The West wanted to impose a condition on Russia before confiscating assets in favor of Ukraine. What is this plan?

Western countries are planning to issue debt to finance Ukraine using Russian assets as collateral. The Financial Times reported this, citing sources.

According to the initiative, Russian assets frozen in Europe will act as a guarantee of debt repayment. In this case, the allied countries of Kyiv will first demand that Russia repay the debt on the issued obligations, and in case of refusal, they will begin to confiscate frozen assets.

It is also clarified that Belgium has disseminated a similar plan among the G7 countries. It is seen as the main option for unfreezing funds owned by Russia to help Ukraine.

Earlier, the Belgian authorities agreed to create a fund of 1.7 billion euros through taxation of income from Russian assets. Ukraine intends to use this money as collateral to attract much larger sums from private investors, which would allow it to borrow money on the capital markets without having to risk its reserves.

Russia called the idea of ​​the West a disguised attempt to appropriate reserves

Head of the analytical department of BKF bank Maxim Osadchiy in the commentary RIA News called the West's proposal to issue bonds to support Ukraine a disguised attempt to appropriate Russian reserves.

This “fruitful debut idea” is a creative reworking of the previously proposed idea of ​​Ukraine issuing “reparation” bonds, secured by Kyiv’s claims against Moscow. However, both ideas are equally contrary to international law and are disguised “relatively fair ways of taking away” frozen Russian reserves

Maxim OsadchiyHead of Analytical Department of BKF Bank

The expert emphasized that the response to such actions could be open confiscation by Russia of the assets of residents of unfriendly countries.

Chairman of the Federation Council Committee on International Affairs Grigory Karasin emphasized that Russia will not accept any plan to confiscate Moscow’s assets blocked in foreign accounts and will react to this as an act of international banditry.

The EU summit approved the use of income from Russian assets to help Kyiv

On February 1, the EU Summit approved a proposal from the European Commission (EC) to use proceeds from frozen Russian assets to finance assistance to Ukraine.

It is assumed that income received from Russian assets will be stored in special accounts to finance assistance to Ukraine on demand.

Before this decision was made, on January 28, the Russian Foreign Ministry stated that Moscow would adequately and effectively respond to any attempts at confiscation by Western countries.

It has been repeatedly noted that the seizure of property of the Russian Federation is unlawful and violates the fundamental principles and norms of international law, including the sovereign equality of states

Russian Foreign Ministry

The department called the possible confiscation an encroachment on sovereign real estate and “banal theft by one group of states of the property of another.”

Zakharova commented on the EU decision to transfer assets to Russia to support Ukraine

The official representative of the Russian Foreign Ministry, Maria Zakharova, called the European Union’s decision to use proceeds from frozen Russian assets to help Ukraine a theft that the West is imposing on the world community.

The diplomat noted that 33 billion euros, which will be provided to the Ukrainian side in the form of loans, “will drive the country even deeper into a debt hole.”

In essence, we will be dealing with banal theft, which fits perfectly into the paradigm of the “rules-based world order” imposed by the West on the world community

Maria Zakharovaofficial representative of the Russian Foreign Ministry

According to her, the militarization of the economy is taking place in the European Union; Brussels wants to overcome the financial crisis through a forced transition to a war footing. Zakharova emphasized that this would be a potential security challenge for the whole world.