248
G7 agrees on transfer of $50 billion in profits from frozen Russian assets to Ukraine
(kyivindependent.com)
About damn time.
this post was submitted on 13 Jun 2024
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Damn straight. Ukraine needs help now western countries!
Give them weapons,money and troops to defeat the Russian Empire.
While Western countries have frozen $300 billion in Russian assets, they can only access the income generated by these funds, approximately $3.2 billion, annually.
By setting up a fund with loans to be repaid using this income, countries can offer immediate support to Ukraine beyond this amount.
I wonder why they cant liquidate a percentage of any of the currently held assets? I guess most are intangible? Or some other international law preventing direct asset control
They probably can, but it's a further escalation in sanctions and would set a precedent that investments in another country aren't safe.
By holding them, it also gives an incentive to end the war. Stop the war and get 300 billion back!
Edit: someone else referred to it as the carrot (held money) and the stick (donated weapons). Carrot and stick is better than stick and stick. Better up to a point anyway...
I mean didn't Russia already seize foreign companies, so the precedent is set?
The precedent that that is setting, is that it is not safe to invest in Russia. If the EU does this, the precedent is that the EU is not safe to invest in.
Russia's economy is a dwarf compared to the EU or USA.
Good point
Another article said it was mostly the IMF objecting worried about trust in the international banking system and the precedent it would set
Because rich people don't want the precedent that their money can be taken if they do bad things.
i assume its an estimation on how much they can liquidate 50b assets. its an insane amount of money, my neighbor is selling their house and its still up years later.
For bank interest, stock dividends, matured bonds, those are cash, so those are easy.
For stock, real estate, and other non-liquid assets appreciation, probably not so easy.