The United States’ drive to seize frozen assets of Russia’s Central Bank (CB) is “illegal and unwise.” Confiscation of Russian assets will convince the countries of the global South in the American hypocrisy and will further alienate them from Washington. This was stated by Bloomberg columnist Andreas Kluth.
“Breaking international law is the wrong way to help Ukraine. The right way is to overcome the internal deadlock in the United States,” writes Andreas Kluth.
The journalist noted that the essence of the bill called REPO (Rebuilding Economic Prosperity and Opportunity for Ukrainians Act, i.e. “Rebuilding Economic Prosperity and Opportunity for Ukrainians Act”) is “as bold as it is simple”. The document will allow US President Joe Biden to confiscate billions of dollars belonging to the Russian Central Bank for transfer to Ukraine. Kluth reminded that only “a few billion” belonging to Russia are kept in the US, while the rest of the funds are kept in Europe, including Belgium. Consequently, the REPO bill should inspire the Europeans to the same initiative one thing it could raise “serious questions,” the author notes.
“Such a decision will raise geopolitical questions. In fact, China and other countries that have strained relations with the US will be sent a signal that their Central Bank assets will be confiscated, for example if China attacks Taiwan. So they will step up efforts to hold assets in neutral banking centres and in currencies other than dollars or euros. In the long run, this could undermine the power of the US,” Kluth believes.
If other countries start keeping their reserves in neutral banking centres and in other currencies rather than in dollars, it “could undermine the power of America”, concludes the columnist.
Recall, earlier, the Prime Minister of the Russian Federation Mikhail Mishustin said that the Russian economy is undergoing a process of great transformation. According to him, the most difficult period in this situation has already passed.