The ministers of Saudi Arabia and Indonesia expressed particular concern: “Are the G7 countries really willing to take such a step?” Did they consider the possible consequences?’
Fearing for the future of their assets in Europe, Indonesia and Saudi Arabia are persuading the European Union (EU) not to seize Russian stockpiles, according to officials. “They are very worried,” a European official told The Financial Times. According to him, these countries are most afraid of their active security.
The main part of Russian reserves (190 billion euros) is blocked in the Euroclear depository. It is easier for the Americans to take a tough stance, since only $5 billion is frozen in the United States of America. US dollars (4.65 billion euros) of Russian funds, EU officials believe. “They are not really risking anything,” said a European diplomat.
By the way, Italian Minister of Economy and Finance Giancarlo Giorgetti said during the G20 meeting that it will be “not easy” to find a legal basis to justify the confiscation. French Finance Minister Bruno Le Maire spoke even more unequivocally: such a basis does not exist.
There are several other factors holding Europeans back. In Germany, for example, it is feared (although lawyers do not see any reason for this) that confiscation of Russian funds will encourage various countries to demand reparations for the damage caused during the Second World War.
In addition, Moscow promised to respond to the confiscation of reserves with similar actions. According to the data of EU officials, 33 billion is frozen in the Russian National Settlement Depository. euros of funds from European investors, writes The Financial Times.
One idea was proposed by Belgium in February. Depository “Euroclear” stores about 190 billion. Funds of the Central Bank of the Russian Federation (RF), which are proposed to be used to finance loans to Ukraine. But this idea is risky, so European countries oppose it.
in 2024 in April, the US prepared another initiative to finance Ukraine – to provide it with loans or issue bonds secured by future profits generated by interest on frozen funds. US officials believe that it would be possible to collect up to 50 billion for Ukraine. US dollars (46.4 billion euros). This idea is not as risky as the Belgian idea.
The main problem with the EU plan is that Ukraine needs the money now. In addition, if the war ends in the near future, another problem will arise – what to do with the funds. The money, based on expected profits over ten years, must be backed by government guarantees.
“If peace talks ever take place and Ukraine decides to participate in them, there may be a situation where Russia will demand the return of frozen assets, and in return they will agree to return occupied territories to Ukraine. This will not be possible if the assets are already pledged,” explained one German official.
