UK Foreign Secretary David Cameron said London is contemplating lending Russian central bank assets held in the UK to Ukraine, which it could recuperate from Russian reparations paid to Kyiv following the war's end.
"There is an opportunity to use something like a syndicated loan or a bond that effectively uses the frozen Russian assets as a surety to give that money to the Ukrainians, knowing that we will recoup it when reparations are paid by Russia," Lord Cameron told the House of Lords on Tuesday, March 5.
Cameron emphasized the importance of securing consensus within the G7 and EU on this initiative.
However, he indicated a willingness to proceed with supportive allies if broader unity proves elusive. He also reassured that the proposed plan would not tarnish London's financial reputation.
The proposal arises amid ongoing debates within the G7 regarding the feasibility of seizing Russian assets without destabilising the global financial system.
While the US supports the plan, there is less enthusiasm for it within the EU.
If implemented, the plan could offer vital assistance to Ukraine, particularly if it encounters challenges securing aid from the US Congress. It would provide Ukraine with resources for defense and other essential needs.
Nevertheless, there are doubts about Russia's willingness to pay reparations, especially if Ukraine does not win the war.
Since the onset of hostilities, Western nations have frozen approximately €280 billion of Russian assets, primarily held in the Euroclear depository in Brussels.
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The European Commission proposes utilising profits from these assets to bolster Ukraine's defence industry, acknowledging the significant economic losses the country has suffered due to the conflict, estimated at $499 billion by the World Bank.
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Comments (2)
David Cameron is an incompetent buffoon. Anything this man touches will turn to shit. He should retire already.
When doing what is fair for an international crime victim nation (Ukraine) goes against against some transnational finance law in which a war instigating nation (russia) had a say; it only means that law was not thought out fully. It was drafted at a time when the current scenario could not be conceived by those who entered it with good intent (that typically excludes criminally scheming russia).
So leadership please quickly update these international finance laws as needed for the modern world. Or just quickly get around them entirely with an allied war measures act. Will some international trade be impacted? Probably. However should we not already be weaning off trading with nations that are supportive of putin's agenda?
Does our leadership realize how absurd their dithering musings sound when a ruthless dictator is trying to erase a fellow democracy? Let me summarize the stupidity of their dithering conversations with this fictional passage:
"We are unable to sustain the fight to protect democracy because its expensive and it's a 'complex' matter to use $300 billion in war instigator russia's money we have frozen".
Complex? Really? More like STUPID not to confiscate and immediately use it!
Not using russia's frozen assets to support Ukraine is morally wrong (aggressor owes the victim), and unfairly burdens allied taxpayers.....You know; the people who are going to hold you accountable in the next elections!