UK moves to use frozen Russian assets to help rebuild Ukraine

UK moves to use frozen Russian assets to help rebuild Ukraine

Amid Russia’s escalation of devastating attacks on Ukraine, the UK government is propose legislation It would be able to divert frozen Russian assets to rebuild Ukraine and keep sanctions in place until Moscow pays compensation to its war-torn neighbor.

in line with the British Declaration verdict last month At the annual Group of 7 meeting in Hiroshima, Japan, to freeze an estimated $300 billion worth of Russian assets held by banks and financial institutions in those countries – including the UK – “until Russia pays for damages caused to Ukraine”. does not do.”

The case of confiscated property is highly controversial. While governments have the power to freeze assets, the European Central Bank has warned Brussels privately that freezing Russian funds or paying Ukraine the interest earned on those accounts could undermine confidence in the euro and financial stability. can shake. The Financial Times, Investors may be reluctant to use the euro as a reserve currency if they fear their funds may be siphoned off.

According to the most recent figures from the World Bank, the European Commission and the United Nations, the reconstruction cost of Ukraine is estimated to exceed $411 billion. The devastated landscape of the eastern town of Bakhmut, held up by Ukraine’s President Volodymyr Zelensky at the G7 meeting, is just one sign of the damage. “You have to understand that there is nothing,” Mr. Zelensky told reporters. “They have destroyed everything. There are no buildings.

The bank’s estimate was calculated before the destruction of the Kakhovka dam in southern Ukraine this month.

Demands to seize Russian assets and use them to rebuild Ukraine have grown as the war stretches well into its second year. Last week, the United States Senate introduced bipartisan bill Confiscating Russian assets and using them to rebuild Ukraine. and this issue is also expected to come on a Ukraine Recovery Conference Being held in London on Wednesday and Thursday.

Since Russia launched its full-scale invasion of Ukraine early last year, Britain has frozen assets worth around $23 billion and imposed sanctions on 1,550 individuals. The government’s latest proposal would require people to disclose their holdings in the UK under the sanctions.

“Through our new measures today, we are strengthening the UK’s sanctions approach,” James Cleverley, Britain’s foreign secretary, said in a statement on Monday accompanying the announcement, confirming that Russia would pay for the reparations. Britain is prepared to use sanctions to ensure it does. The country it has attacked so mercilessly.

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