Biden Seeks Plan to Tap Russian Assets for Ukraine

US president wants to see progress by the June G-7 Summit

The allies all concur that the funds should remain off-limits from Russia unless it pledges to help with Ukraine’s reconstruction, but they’re at odds over whether it would be lawful to seize them outright. 

France and Germany, along with the European Central Bank, have so far resisted taking any path that would lead to the funds being seized.

Treasury Secretary Janet Yellen and others have downplayed most of those concerns. 

The UK and Canada are also in favor of seizing the assets

One challenge is that the vast majority of the funds are in Europe, mostly held through the Belgium-based clearing house Euroclear, and any agreement will need the backing of all G-7 nations. 

Another challenge is finding an option deemed by all allies to be legally sound 

On Wednesday, European Commission President Ursula von der Leyen suggested using those proceeds to fund weapons for Ukraine.

Bloomberg 29 februari 2024 

https://www.bloomberg.com/news/articles/2024-02-29/biden-seeks-plan-to-tap-russian-assets-for-ukraine-by-g-7-summit


RE: När kan det vara "legally sound" att ta andras pengar?

På vilken rättslig grund är pengarna frusna? 


Oligarkerna, EU och Magna Charta

https://englundmacro.blogspot.com/2022/03/oligarkerna-eu-och-magna-charta.html


Reparations are typically negotiated with a defeated state after hostilities have ceased, not imposed and enforced while bullets are flying. 

Taking the money would add to the view, already common in the global south, that America and its allies hew to international law only when it suits them. 

Because the West’s case against Russia’s invasion is that it is illegal, this smacks of hypocrisy.

So lawyers are scrambling to find clever mechanisms by which Russia’s portfolio might be tapped legally. 

The free funding is helping Euroclear make extraordinary profits. The eu has already ordered the firm to hive them off and not to distribute them to shareholders

The Economist 29 February 2024 

https://www.economist.com/leaders/2024/02/28/how-to-put-russias-frozen-assets-to-work-for-ukraine







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