/ world today news/ The United States is dragging Europe into a dangerous game by forcing it to transfer frozen Russian assets to Ukraine. The European Central Bank, Germany, France and Belgium opposed this “action”. Obviously, the example of Iran, which was able to seize some of its assets from the US, played a role. In Europe, they understand that Russia will not give up on its own – in the end, they will have to pay one way or another. But then they would have to give up their own money. And with the interest.
The US authorities are proposing to seize and transfer our frozen assets to Ukraine through the World Bank and the European Bank for Reconstruction and Development. This was reported by the Financial Times business newspaper, citing its sources.
US officials are demanding that Europe withdraw the seized 260 billion euros from Russian central bank reserves and transfer them to Ukraine in tranches through these two banks. But the Europeans, fearing the consequences for their financial system, resist and oppose such a radical measure.
The main opponents are the European Central Bank, Germany, France and Belgium, in whose jurisdiction most of the seized assets are actually located. They fear that the unprecedented seizure of assets by the Russian central bank will destroy the confidence of third countries, mainly China and Saudi Arabia, in the European financial system and cause an outflow of money from Europe, as well as a decline in the euro.
A total of 260 billion euros of Russian assets were seized in the G7 countries and Australia after the start of the SVO. Of these, 210 billion (over 80%) come from EU countries. And 191 billion of this amount is in the accounts of the Belgian-registered depository Euroclear. Analysts say Russia is unlikely to ever see its frozen reserves. But the more real the political decision to seize Russian assets becomes, the greater the real threats to people with savings and assets denominated in euros.
As noted by the Financial Times, this radicalization of Washington’s position appeared against the background of the fiasco in the decision-making on new deals in the US Congress on granting aid to Ukraine, Israel and Taiwan, and the problems of granting 50 billion euros over the next three years from the EU.
How dangerous is this situation for Europe and what should Russia do? Should we wait for everything to be resolved or should we step in and support the position of Berlin, Paris and Brussels? The host of “First Russian” Yuriy Pronko discussed this and other issues with economist Mikhail Khazin and financial analyst Andrey Vernikov on the air of the “Tsargrad. Main” program.
Will they be able to push this decision through Europe?
Economist Mihail Khazin noted that Europe as such has no subjectivity in this situation. And if the overseas command is firm enough, they will try to carry it out.
I do not rule out that this cannot be done within the framework of formal legislation. In that case, they will duck and get away with referring to it. And about the fact that it is impossible for them to return [замразените пари]I just don’t think so.
I think in a few years they will have to return them anyway. And with the lost benefits. In fact, Iran has shown us this by the example of the United States, how it can be forced to do this. But for now, of course, Europe will not agree to this,– said the expert.
According to Khazin, Europe does not want to transfer our billions to Ukraine, as it will then have to return its own. And given the current economic situation, this carries enormous risks for Europeans.
Not much is known in the public space about what is happening to Europe. But the participants know everything very well. When you have an industrial decline of 0.5% per month – according to official figures – then you really don’t want to take drastic action. It’s very scaryhe noted.
Tsargrad host Yuriy Pronko noted that the FT material said that the injured parties would receive compensation. The surprising thing is that among the countries there are precisely those that have provided assistance to Ukraine, Pronko believes.
You have to understand that the West is now living in some virtual reality of their own making. I do not want and will not understand this. This is of no interest to anyone but the participants. I repeat again: 0.5% drop per month. In England, by the way, it is no better. That’s why they say it and do it,– commented Khazin.
The economist recalled that when he was recently asked in an interview to assess the financial situation in Europe, he said that after the death of the son of the reigning prince of Liechtenstein, Prince Constantine, who led the financial policy, European officials will have to think a lot about the actions you are
And I said honestly: the day before yesterday, the coordinator of the financial policy of the Principality of Liechtenstein, the youngest son of the reigning prince of Liechtenstein, Constantine, died suddenly, aged 51. But let’s look at this situation in such a way that they do not remain untouchable.
In this situation, do you want to take and spend 260 foreign billion owned by other people somewhere? Well, maybe the prince just died. Maybe he choked on a cookie. Or, distracted, he forgot to breathe. Anything can happen. What if it’s not that? And it’s no coincidence that everyone who looks on from the side starts asking questions…– Khazin shared his thoughts.
He recalled the saying “He who laughs last laughs best.” And when there is a decline of 0.5% per month, then “we have to behave more modestly.”
The US is playing its own game
Will the EU countries be able to defend their positions or will they still have to give way? In response to this question, financial analyst Andrey Vernikov said that a senior economic adviser from China advised selling their US assets, and quickly. He suggested that China could be put under the same sanctions pressure as Russia. Whether this will actually happen, in Vernikov’s opinion, depends not only on the economy.
Here there is not only economics, but also politics. It is a fusion, a type of alloy. It’s no secret that Russia has been struggling at the front lately. This can be felt in the speeches of President Vladimir Putin. And the US is delaying the release of a new tranche of aid.
These verbal interventions do not mean that things will come to pass. But in this way, the Americans are playing a winning game, showing Ukraine that they are “for her with all their hearts.” And as the President of the United States, Joe Biden, said, “we will be with you until the last opportunity”,– noted Vernikov.
According to him, the US is risking absolutely nothing in this game. But, as President Vladimir Putin said, we will not stroke them with a feather either.
And here Vladimir Putin, if you remember, said that we will not stroke them with a feather either. On that basis, I fully agree with the previous speaker that indeed things are unlikely to come to that. But the European bureaucracy will struggle to the core to twist, twist…,– pointed out Vernikov.
Russia will get its own
Tsargrad’s interlocutor also commented on the decision of the Federal Prosecutor’s Office to seize our assets for 720 million euros. It is about funds of the National Clearing Depository (NRD) placed in JP Morgan. According to Spiegel magazine, on the day NRD was included in the EU sanctions list, the depository tried to withdraw funds – and the prosecution considered this an attempt to circumvent the sanctions.
As Michael rightly said, we don’t know much about what’s going on under the rug. If funds are withdrawn, they will be symbolic, as with the depository of the Moscow Stock Exchange. That is, it seems to me that there will be a big deal between the West and Russia. And as part of that deal, you’ll have to bargain for something to make an exchange – “you to me, I to you”– notes the analyst.
He added that we should not forget Tehran, which was eventually able to return some of its foreign exchange reserves, although not immediately.
As Putin said, it remains to be seen who will win. And if something happens, we will confiscate more, according to the value of the assets,– concluded the expert.
Translation: ES
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