Seizing Russian Assets
By Sanctions against Russia for its war against Ukraine have frozen $300 billion of Russian Central Bank assets, mostly held in Europe. US Treasury Secretary Janet Yellen said this week that she is beginning to lean toward liquidating those assets and using them for reconstructing Ukraine.
She is at a meeting of finance ministers and central bank governors of the G20 in Sao Paulo, Brazil. Bruno LeMaire, the French foreign minister, quickly responded that seizing the assets would be against international law.
There have been signs of growing momentum among western policymakers to use Russia’s assets as Ukraine’s military situation becomes more dire. Rishi Sunak, Britain’s prime minister, urged his counterparts this week to be more aggressive in their efforts to find a lawful way to seize Russia’s assets. However, France and Germany have been urging a more cautious approach and Russia has vowed to retaliate if its assets are seized.
To be continued.