Jean MartinThe Kremlin has issued a stern warning, cautioning against the potential “catastrophic consequences” of the European Union’s plans to confiscate Russian assets held in Western banks.
This development is amidst growing tensions between Russia and the EU, with the proposed asset redistribution sparking concerns and resistance from various quarters.
Fear of Litigation Over Asset Redistribution:
Some Western banks have voiced apprehensions over the EU’s proposal to redistribute billions of euros in interest earned on frozen Russian assets.
Senior industry sources reveal concerns about potential costly litigation and legal ramifications associated with the proposed measures, highlighting the issue’s complexities and uncertainties.
Proceeds to Support Ukraine, Russia Remains Asset Owner:
European Union leaders have reaffirmed their dedication to supporting Ukraine’s defense efforts against Russia, announcing plans to allocate up to 3 billion euros annually for arms supplies.
Despite the asset redistribution, Russia would retain ownership of the frozen assets, raising questions about the legal and financial importance for all parties involved.
Assets Belong to Holders, Warning of Legal Ramifications:
Kremlin spokesman Dmitry Peskov asserts that the proceeds from Russian assets rightfully belong to their holders, rejecting Brussels’ assertions.
Peskov issues a veiled warning, highlighting the potential “catastrophic consequences” of expropriating assets and hinting at legal repercussions for banks and the European economy.
Central Bank Governor Elvira Nabiullina weighs in on the matter, affirming Russia’s determination to defend its interests in response to the EU’s actions regarding frozen assets.
With interest rates held steady at 16%, Nabiullina underscores the country’s readiness to take corresponding measures to safeguard its economic interests amidst escalating tensions with the EU.
