The US and European allies determined to use frozen Russian assets to help Ukraine – somehow
In Brazil this week, they’re arguing about the best way to do it without getting into legal or financial jeopardy.
Western nations have frozen about €260 billion ($282 billion) in securities and cash, more than two-thirds of it in the European Union.
They all agree those funds should remain off-limits from Russia unless it pledges to help with Ukraine’s reconstruction.
But they’re at odds over whether it’s lawful to cross the Rubicon by seizing the assets outright
France and Germany, along with the European Central Bank, have expressed the most caution.
They worry about Russian retaliation targeting European assets there, and also the impact on financial stability and the euro’s status as a reserve currency, according to people familiar with the matter.
The danger, it’s argued, is that such a drastic move would set a precedent – pushing other nations to avoid holding their reserves in Western currencies in case they’re one day subject to similar penalties.
Bloomberg 28 February 2024
The administration welcomes “in principle” a bill that would allow it to confiscate the funds
, according to a November memo from the National Security Council to the Senate Foreign Relations Committee.
“The bill would provide the authority needed for the Executive branch to seize Russian sovereign assets for the benefit of Ukraine,”
https://englundmacro.blogspot.com/2024/01/bidens-administration-is-backing.html
Oligarkerna, EU och Magna Charta
https://englundmacro.blogspot.com/2022/03/oligarkerna-eu-och-magna-charta.html
Årets Anna Lindh-pris går till USA:s första kvinnliga utrikesminister Madeleine Albright
/Robin/ Cook was explaining that it is difficult for Britain to commit to the war without UN Security Council approval because the legal advice he had received was that such action would be illegal under international law.
Albright’s response was, simply, ‘get new lawyers.’
Kommentarer