The UK government is proposing legislation that would allow them to redirect frozen Russian assets towards the reconstruction efforts in Ukraine. This move is a response to Russia’s ongoing damaging attacks on Ukraine. The aim is to keep sanctions in place until Moscow compensates its war-torn neighbor. This announcement aligns with the decision made at the G7 meeting last month in Hiroshima, Japan, where it was agreed to freeze around $300 billion worth of Russian assets held by banks and financial institutions, including those in Britain.
However, the issue of seized assets is a contentious one. Although governments have the authority to freeze assets, the European Central Bank has expressed concerns that confiscating Russian funds or giving the earned interest on those accounts to Ukraine could undermine confidence in the euro and destabilize financial stability. Such actions might discourage investors from using euros as a reserve currency if they fear their funds could be seized.
The reconstruction costs for Ukraine are estimated to surpass $411 billion, according to the World Bank, the European Commission, and the United Nations. These organizations, alongside President Volodymyr Zelensky of Ukraine, emphasized the extent of the damage during the G7 meeting. The eastern city of Bakhmut serves as a harrowing example, with Mr. Zelensky stating, “You have to understand that there is nothing. They’ve destroyed everything. There are no buildings.”
It’s important to note that the World Bank’s estimate was calculated prior to the recent extensive devastation caused by the destruction of the Kakhovka dam in southern Ukraine.
Calls to seize Russian assets and utilize them for Ukraine’s reconstruction have intensified as the war enters its second year. Just last week, the United States Senate introduced a bipartisan bill with the same objective. Furthermore, this issue is expected to be raised at the Ukraine Recovery Conference taking place in London.
Since the beginning of Russia’s invasion of Ukraine, the UK has frozen approximately $23 billion in assets and imposed sanctions on 1,550 individuals. The latest proposal by the UK government would require individuals under sanctions to disclose their assets in Britain.
James Cleverly, the British Foreign Secretary, stated that through these new measures, they are strengthening the UK’s sanctions approach. This action demonstrates their commitment to ensuring that Russia pays for the damage it has inflicted through its reckless attacks on Ukraine.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
