The U.S. administration is considering making use of frozen Russian assets totaling USD 300 billion to support Ukraine’s war efforts, according to “The New York Times,” citing senior U.S. and European officials.
The newspaper notes that until recently, U.S. Treasury Secretary Janet Yellen argued that seizing the funds without Congress’s decision would be inconsistent with U.S. law. There were also concerns that if Russian funds were seized, other countries might hesitate to store their resources in U.S. currency.
However, currently, the administration, in coordination with G7 countries, has begun reevaluating the feasibility of seizing the frozen funds in global banks.
“The amount we’re talking about changes the rules of the game,” says Philip Zelikow, an official from the State Department in both administrations of President George W. Bush. “The fight for this money is, in a sense, a fundamental campaign of the war,” he added.
Seizing such a massive sum of money from a sovereign state would be unprecedented, and such an action could have unpredictable legal and economic consequences. It would almost certainly lead to legal proceedings and retaliation from Russia, the newspaper emphasizes.
Russian Deputy Foreign Minister Sergei Ryabkov responded to the New York Times’ report by stating that Russia could sever diplomatic relations with the United States, according to Reuters. “The triggering factor could be the confiscation of property, further military escalation, and many other things. I would not rely on negative forecasts here,” he said, adding that Moscow is “ready for any scenario.”
However, currently, the administration, in coordination with G7 countries, has begun reevaluating the feasibility of seizing the frozen funds in global banks.
“The amount we’re talking about changes the rules of the game,” says Philip Zelikow, an official from the State Department in both administrations of President George W. Bush. “The fight for this money is, in a sense, a fundamental campaign of the war,” he added.
Seizing such a massive sum of money from a sovereign state would be unprecedented, and such an action could have unpredictable legal and economic consequences. It would almost certainly lead to legal proceedings and retaliation from Russia, the newspaper emphasizes.
Russian Deputy Foreign Minister Sergei Ryabkov responded to the New York Times’ report by stating that Russia could sever diplomatic relations with the United States, according to Reuters. “The triggering factor could be the confiscation of property, further military escalation, and many other things. I would not rely on negative forecasts here,” he said, adding that Moscow is “ready for any scenario.”
Source:
More In Business MORE...
