Seizing the frozen funds would hasten the shift to regional payment systems, the president has said
Any attempt by the West to seize Russia’s frozen reserves would set off an irreversible shift toward regional payment systems, which would ultimately benefit the global economy, President Vladimir Putin has said.
An estimated $300 billion worth of Russian sovereign assets were frozen by the West following the escalation of the Ukraine conflict in February 2022. Around €200 billion ($209 billion) is held by Euroclear, a Brussels-based clearing house. EU foreign policy chief Kaja Kallas has repeatedly called for the funds to be tapped for Ukraine’s reconstruction, although some member states have pushed back on the idea.
There’s constant talk in the West “about how they are going to steal our money,” Putin said at the Eurasian Economic Forum in Minsk on Thursday. “As soon as it happens, the shift toward regional payment systems will accelerate and undoubtedly become irreversible,” he said, adding that ultimately that would be a good thing for the global economy.
“Maybe it’s even worth paying the price for that,” the president argued.
Putin added upon further reflection that the term “theft” was insufficient. “Theft is the secretive taking of property – this is open. This is robbery,” he said.
“We’re determined to continue strengthening our own financial and settlement instruments in this regard,” Putin stressed.
The frozen funds have already accrued billions of euros in interest, $1.63 billion of which Euroclear transferred to Kiev last July to back a $50 billion loan for Ukraine provided by the G7.
Brussels is currently discussing ways to extract more revenue from the immobilized assets without violating international legal norms. The International Monetary Fund has warned that outright seizure could damage global trust in Western financial institutions.
Discussions among member states about confiscating the assets have been ongoing for more than three years without any resolution.
Moscow has condemned the freezing of its assets and has hinted at possible retaliatory measures against Western investments and property in Russia.
