LOS ANGELES (OC).–Looking for ways to finance the Ukraine War, war hawks like French President Emmanuel Macron and British Prime Minister Keir Starmer were the first to call on the EU to confiscate $200 billion in Russian assets left in Frankfurt’s European Central Bank [ECNB]. Imagine that consequences to confiscating a nation’s assets to the credibility of the ECB? After the Feb. 24, 2022 start of the Ukraine War, the ECB froze Russian assets, with some members vowing to use the funds to compensate Ukraine for damage to the country. But the legality of seizing a nation’s sovereign assets must be adjudicate in court before any decision can be made about confiscating assets to pay for anything. While no one likes the war, it’s not an arbitrary political decision to confiscate the assets of a sovereign nation place in the ECB as a fiduciary to manage the assets.
Russia’s $200 billion in assets are held in Belgium by the international deposit organization Euroclear. Belgium’s Foreign Minister Maxime Prevot said confiscating Russian assets would have disastrous consequences to the ECP, the credibility overall to the euro. “For Belgium, confiscating Russian sovereign assets is not an option,” Prevot said at his Belgium office. Prevot is concerned about letting political decisions decide complex legal questions that can’t be decided by Ukraine’s 47-year-President Volodymyr Zelensky wants reparations from Russia. Well, it’s one thing it Zelensky gets a court ruling recognized by Ukraine and Russia to collect on a debt, it’s still another to just seize assets because Ukraine isn’t happy with the Russian Federation. Prevot thinks confiscating Russian assets would have a disastrous consequence on the Eurozone.
Macron and Starmer are ready to jump at the chance to taking Russian assets to pay for the Ukraine War or reparations. “Such a confiscation, motivated by a political decision rather than a legal or judicial one, would be likely to cause a terrible systematic shock across the European financial markets, deal a severe blow to the credibility of the euro, and thus have very problematic domino effects,” Prevot said. Why Macron and Starmer think it’s OK to seize Russian assets without considering the consequences is anyone’s guess. It’s probably the same logic used to discuss post-war security arrangements when they have no peace deal to end the war. Why does Marcon, Starmer and German Chancellor Friedrich Merz think that they can undermine Trump’s peace efforts with the Russian Federation when they have no plan to end the three-and-a-half year conflict.
EU officials with the G7 used the interest paid on frozen Russian assets to guarantee a 50 billion euro loan to Ukraine. Now Macron, Starmer and Merz think it’s only logical to start confiscating frozen Russian assets under Belgium deposit to supply Ukraine an endless stream of cash to finance Kiev’s bankrupt government and war with the Kremlin. “Do you think that all the other countries in the world, which have also invested billions and billions in European financial markets, would not risk withdrawing them, say, ‘If it is so easy to have these assets confiscated tomorrow . . . then I will put them somewhere else?’” Prevot asked. Whatever happened in Ukraine, does the EU really think confiscating cash from Russia will help the peace process? Russian President Vladimir Putin would view confiscation of Russian assets and act of war. It that what the EU wants?
Prevot is the first European leader to stand up to the anti-Russian zealots in the EU, including Macron, Merz European Council President Ursula von der Leyen, all of whom are ready to confiscate Russian assets without any legal ruling. “We’re not going to take the risk for everyone with a friendly pat on the back, saying we’re counting on your, thank you, and if there’s any problem, we’ll prove you with advice or lawyers, but that all,” Prevot said. Macron, Merz and Starmer have so much antipathy toward Putin they’re showing little logic. Macron, Merz and Starmeer haven’t figured out the long term consequences to funding the Ukraine War. After meeting it Paris yesterday with Zelensky to discuss post-war security arrangements, it’s clear that they have not plan for ending the war. Trump know exaction what it would take to bring about peace.
Belgium’s Foreign Minister Maxime Prevot tried to sober up the anti-Putin zealots in the EU ready to confiscate his frozen Russian assets. Prevot made the strongest case possible to avoid stealing Russian assets, talking only about consequences to the European banking system. But confiscating Russian assets would be seen as an act of war by the Russian Federation. Whatever certain members of the EU feel about Putin or Zelensky, embroiling the EU in a war with Russia would not be good for the Eurozone. Prevot points out that confiscating Russian assets would send chills in financial markets, realizing that they can arbitrarily seize assets without a recognized court order. Zelensky needs to stop gaslighting the EU, encouraging members to confiscate Russian assets to give to Kiev. Whatever happens to Russian assets, Zelensky should have no say.
About the Author
John M. Curtis writes politically neutral commentary analyzing spin in national and global news. He’s editor of OnlineColumnist.com and author of Dodging The Bullet and Operation Charisma.
