US Hopes to Convince EU to ‘Steal’ Russian Assets for Ukraine

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The US financial system is facing a catastrophic loss of credibility, sending even more nations to BRICS. The latest plan is to take Russian assets and give them to Ukraine. They will call it sanctions. Some G7 nations don’t want to do it because they have much more to lose than the US.

Since the beginning of Russia’s invasion of Ukraine in February 2022, the U.S. has sanctioned more than 4,000 people and businesses, including 80% of Russia’s banking sector by assets. It hasn’t changed the course of events, but it has pushed nations toward BRICS. Thailand now wants to join BRICS. We haven’t seen the results yet because it’s not completely off the ground, but it will kill the US dollar.

ABC News reports that a U.S. Treasury official is traveling to Kyiv this week to discuss U.S. financial support for Ukraine and efforts to tighten sanctions on Russia, which have so far only hurt the West. The officials plan to use immobilized Russian sovereign assets to benefit Ukraine as it fends off Russia’s invasion.

In retaliation, Russia is now looking to do the same with Western interests it can control.

Deputy Secretary Wally Adeyemo’s trip comes as Russia gains territory on the battlefield after an especially lengthy delay in U.S. military aid left Ukraine at the mercy of Russia’s bigger army. The outlook for Ukraine’s state finances are not good.

President Joe Biden signed legislation in April that allows the administration to seize the roughly $5 billion in Russian state assets located in the U.S. However, a majority of the $260 billion in frozen Russian assets are in Europe. U.S. officials are hoping for a consensus from their European allies on how to spend that money.

THE RED LINE

For some G7 members, that is a “red line.”

Daleep Singh, the deputy national security adviser for international economics, said, “That would be the most efficient and potent option for all of us in the G7.” Singh spoke on Tuesday at an event hosted by the Brookings Institution think tank.

“But seizing [the] principal is a red line for many of our G7 partners,” Singh said, adding that “we don’t have consensus as a G7” on taking that step.

In addition to the US, the G7 includes Canada, France, Italy, Japan, the UK and the EU. More than 80% of the frozen Russian assets are held by the EU, which is reluctant to expose its clearinghouse to Moscow’s retaliation. Russia has vowed a reciprocal response to any “theft” from the West.


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