Russia: Biden's 'crazy' plan to seize Moscow assets 'very dangerous'
3 Min Read
The confiscation of Moscow's assets would be viewed as a "very dangerous precedent" by US partners, according to Konstantin Kosachev, the Russian Federation Council deputy chairman Konstantin Kosachev.
-
Russian Federation Council Deputy Speaker Konstantin Kosachev. (AP)
According to Konstantin Kosachev, deputy speaker of Russia's upper house of parliament, a White House plan to acquire frozen Russian money and use them to aid Ukraine is not only unlawful, but also extremely hazardous, since it may destabilize the entire global financial system.
On Thursday, the New York Times revealed that the US and its European allies, which have suffered difficulties in sending Ukraine funds, have considered the allocation of $300 billion in frozen Russian funds to Ukraine as military aid.
On Telegram on Friday, Kosachev described the effort as "crazy," citing no legality to it and recalled that under international law, central banks' sovereign funds are protected by a particular immunity, and no jurisdiction is permitted to impose any form of coercion on them.
Furthermore, the senator argued, that seizing Russian assets would be a violation of both international and domestic law. He mentioned the Foreign Sovereign Immunities Act of 1976, which safeguards the assets of foreign central banks, and added that many US allies have comparable legislation.
Kosachev described that “International judicial and arbitral practice confirms that it is impossible to impose seizure on funds belonging to central banks and sovereign wealth funds," further expressing that by doing so the US will be setting a "very dangerous precedent" that has the potential to harm the global financial system.
A prospective seizure would prompt a swift reaction from Moscow, with the demand of Western assets locked in Russia on the table, Kosachev said, adding that the US actions would be a "bad signal" in other countries like China and Saudi Arabia, which would question retaining their cash in euros or dollars.
"As a result, everyone loses. There will be another global financial crisis. [It will be] another step towards (potentially) general chaos and destruction."
Kremlin: Sending Russia's frozen funds to Kiev will not go unpunished
On Friday, Kremlin Spokesperson Dmitry Peskov warned that attempts to utilize Russia's frozen assets as funds for Ukraine will be met with consequences.
In a statement, Peskov said "Those who are trying to initiate this, and those who will implement it, must understand that Russia will never leave those who did this alone. And it will constantly exercise its right to legal challenge, international, national, and otherwise. And this, of course, will have — both Europeans and Americans understand this very well — it will have legal consequences for those who initiated and implemented it."
He added that attempts to seize Russia's assets have always been a topic of contemplation among the US and EU, but that it is profoundly unlawful, unacceptable, and could bring damage to global finance and the international system.
A US official stated that the US does not have an official stance yet, but that discussions were ongoing. However, it was revealed that the US has been influencing the UK, France, Germany, Canada, Japan, and Italy to strategize on annexing Russia's frozen funds and diverting them to Ukraine instead.
