Russia calls US transfer of $20bln of frozen assets to Kiev 'robbery'
3 Min Read
Moscow hints that it might consider seizing Western assets on its territory to boost its industrial capacity.
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Pigeons flying in front of the Russian Foreign Ministry building in Moscow, Russia, Wednesday, January 26, 2022 (AP)
Russia’s Foreign Ministry has strongly criticized the US transfer of $20 billion to Ukraine, financed by frozen Russian assets, calling it "simply robbery". Moscow hinted that it might consider seizing Western assets on its territory to boost its industrial capacity.
The Foreign Ministry’s statement on its website denounced the US Treasury Department’s decision to allocate $20 billion from what it described as “stolen” Russian sovereign assets, accusing the G7 countries of orchestrating the act.
The statement further accused the Biden administration of trying to impose as many anti-Russian sanctions as possible in a “Russophobic frenzy” before potentially handing power back to Donald Trump on January 20.
Russia also warned that "no pseudo-legal machinations, steeped in hypocrisy and double standards, will go unanswered."
The statement added, "Russia possesses sufficient capabilities and levers for a retaliatory seizure of Western assets within its jurisdiction, which in such a case would be used to enhance industrial potential and implement infrastructure projects in Russian regions."
On Tuesday, the US Treasury announced the transfer of the $20 billion portion of a $50 billion G7 loan to Ukraine, allocated to a World Bank fund intended to provide economic and financial aid to Kiev. This move fulfills the US’ October pledge to match the European Union’s $20 billion in aid backed by frozen Russian assets, along with smaller loans from Canada, Britain, and Japan, to assist Ukraine in its ongoing war with Russia, according to the Treasury Department.
The big picture
The transfer of funds comes at a time of significant uncertainty for Ukraine, as President-elect Donald J. Trump is set to take office next month.
Trump and Republicans in Congress are expected to provide less economic and military support to Ukraine compared to the backing it received from the Biden administration and Democrats. Despite this, Ukraine continues to depend on international aid to sustain its economy amid the ongoing war.
The $20 billion is part of a $50 billion loan package agreed upon by the Group of 7 nations earlier this year. Following the beginning of the war in Ukraine, the United States and the European Union imposed sanctions that froze much of Russia's central bank assets, most of which are held in Europe.
It is worth noting that Trump has repeatedly stated that he could quickly bring an end to the Russia-Ukraine conflict if he returns to the White House.
