Current location:opinions >>
Plan to tap Russian assets for Ukraine slammed
opinions32329People have gathered around
IntroductionThe Russian flag flies on the dome of the Kremlin Senate building behind Spasskaya Tower, in central ...
The Russian flag flies on the dome of the Kremlin Senate building behind Spasskaya Tower, in central Moscow, Russia, May 4, 2023. [Photo/Agencies]
The European Union's decision last week to use profits from frozen Russian assets for Ukraine's reconstruction has drawn a strong backlash from Moscow, which has threatened it would confiscate more EU assets in retaliation.
The European Council summit which concluded on Friday agreed to use profits generated by frozen Russian state assets for Ukraine's reconstruction. It also mandated the European Commission to prepare the necessary legal proposal by the end of the year for implementation, a move pushed by commission president Ursula von der Leyen for over a year.
About $280 billion of Russian foreign reserves have been frozen by countries that participated in the sanctions against Russia following the Russia-Ukraine conflict that began on Feb 24, 2022.
More than 200 billion euros ($211 billion) sit in the EU, mostly in Belgium held at the Euroclear, an international central securities depository. As the securities reach maturity and are reinvested by financial agencies, they have generated a huge profit.
The G7 finance ministers and central bank governors also sent a similar message in a statement on Oct 12.
On Sunday, Russian State Duma Chairman Vyacheslav Volodin hit back, saying that Moscow is preparing to retaliate by confiscating the assets of "unfriendly" EU nations.
Volodin said if the EU forges ahead with the proposal, Russia's reaction would inflict more economic pain on the EU than the other way around.
"A number of European politicians, led by the president of the European Commission Ursula von der Leyen, have once again started talking about stealing our country's frozen funds in order to continue the militarization of Kyiv," Volodin said in a statement on social media platform Telegram. "Such a decision would require a symmetrical response from the Russian Federation. In that case, far more assets belonging to unfriendly countries will be confiscated than our frozen funds in Europe."
Reservations voiced
Inside the EU, the European Central Bank and some EU member states, such as France and Germany, have voiced reservations about the bloc's move, saying such actions could weaken the euro's standing as a reserve currency because it will prompt other central banks to quit euro-denominated assets and hurt the European financial markets.
While Belgian Prime Minister Alexander De Croo said earlier this month that Belgium will invest 1.7 billion euros next year to assist Ukraine by drawing on its own tax revenue from frozen Russian assets, he had demanded that all legal, macroeconomic and monetary risks involved be taken into consideration.
Luxembourg's outgoing Prime Minister Xavier Bettel, whose country also held frozen Russian securities, called for prudence.
The EU is struggling to keep funding Ukraine as the conflict sees no end in sight.
At the summit, Hungarian Prime Minister Viktor Orban opposed the EU plan to provide 50 billion euros in aid to Ukraine while Slovakia's new Prime Minister Robert Fico expressed reservations over extending new financial support to Kyiv, citing corruption in the country.
All 27 members should unanimously consent to the aid package in the EU's 2024-27 budget.
In the United States, the Republican-controlled House of Representatives is challenging the $60-billion aid sought for Ukraine by President Joe Biden.
Tags:
Reprint:Friends are welcome to share on the Internet, but please indicate the source of the article when reprinting it.“World Whispers news portal”。http://zambia.ekjotinstitute.com/article-28a099894.html
Related articles
Siblings trying to make US water polo teams for Paris Olympics
opinionsWALNUT, Calif. (AP) — Chase Dodd started swimming when he was just a kid. Once he began playing wate ...
【opinions】
Read moreShanghai Disneyland to resume operations
opinionsShanghai Disneyland will resume operations on Thursday, marking Shanghai Disney Resort's return ...
【opinions】
Read moreJudge to hear motion to dismiss Travis Scott from Astroworld lawsuit
opinionsA judge in Texas is set to hear arguments Monday in rap star Travis Scott’s request to be dismissed ...
【opinions】
Read more
Popular articles
- Iran helicopter crash that killed President Raisi could reverberate across the Middle East
- Terracotta Warriors museum sees over 100,000 visits during holiday
- Robert F. Kennedy Jr. convenes hundreds in Iowa to try for access to November ballot
- The WEF’s chairman is still alive and well, despite claims online
- Insider Q&A: CIA's chief technologist's cautious embrace of generative AI
- China, Greece sign deal to boost tourism cooperation
Latest articles
Shohei Ohtani's first walk
Tesla plans to lay off 10% of workforce, multiple news outlets report
Biden hosts Czech leader at White House to promote Ukraine aid amid holdup in Congress
Cambodia deports 130 online scam suspects to China — Radio Free Asia
Devout Christian doctor, 68, who punched dementia
Much of central US faces severe thunderstorm threat and possible tornadoes
LINKS
- Ohio police fatally shoot Amazon warehouse guard who tried to kill supervisor, authorities say
- Miley Cyrus, Lorde and more team up for Talking Heads tribute
- Chinese books, cultural products welcomed at int'l book fair in Morocco
- Amsterdam university cancels classes after violence erupted at a pro
- Air Force instructor pilot killed when ejection seat activated at Texas base
- Judge rejects Hunter Biden's bid to delay his June trial on federal gun charges
- Connecticut GOP faces potential Aug. 13 primary to choose final candidate to challenge Sen. Murphy
- Amsterdam university cancels classes after violence erupted at a pro
- Vermont Legislature passes one of the strongest data privacy measures in the country
- US suggests possibility of penalties if production of Chinese electric vehicles moves to Mexico