LOS ANGELES (OC).–French President Emmanuel Macron got cold feet about his plan to confiscated billions in Russian assets to guarantee loans to Ukraine. Once thought ingenious, the use of Russian assets looks more dicey than ever raising serious questions whether or not the European Union can underwrite Ukrainian President Volodymyr Zelensky’s cash-strapped government and Ukraine War. Macron agreed in principle to the idea of seizing frozen Russia assets until Beligum Prime Minister Bart De Wever warned of dire consequences to the EU as a repository of foreign capital. No matter what one thinks of Russian President Vladimir Putin, De Wever thinks confiscating assets, no matter what the cause, would set a dangerous precedent for the EU. France has some 18 billion Russian euros in French banks, all would be placed at risk if Russia were to sue France and EU for taking the assets.
Many EU members were talked into using frozen Russian assets, not understanding the consequences to France’s banking industry. Zelensky wants the cash anyway he can get it, realizing that he’s replacing the U.S. for the EU as a major funding source for the Kiev government and the war. Zelensky acts like he can pick-choose who how he gets the cash to run his government and the war with the Krkemlin. Brussels has started to wake up that it doesn’t have the bottomless pit of euros to spend on Zelensky’s perpetual war with Russia. Europe holds about $210 billion euros in Russian assets with France holding about 18 billion in French commercial banks. Macron realized that the French economy could be on the hook for any assets taken from Russia and given to Ukraine. Ukraine has limited prospects of repaying any of the loans from to the EU.
Zelensky took some $300 billion during the last two years of the Biden administration. When Trump came to office, he said no more funding the Ukraine War, not only because of the drain on the U.S. Treasury but because of the damage done to U.S.-Russian relations. Biden was ready to wreck decades of diplomacy with Russia to fund proxy war with the Kremlin. Biden once said March 26, 2022 that the aim of the U.S mission in Ukraine was to degrade the Russian military to the point it could no longer wage war. If that were considered a gaffe by a senile U.S leader, his former Defense Secretary Lloyd Austin said the exact same thing April 26, 2022 in Ramstein, Germany. Putin interpreted Biden’s statements to mean the U.S. and the Western Alliance was a war with the Kremlin. Putin vowed to defend Russia at all costs, including, if necessary, using nukes. Trump campaigned to end the Ukraine War expecting Zelensky and the EU to be cooperative partners.
Trump’s biggest obstacle to peace turns out to be Zelensky and the EU. They refuse, so war, to agree to cede rterritory to Putin, meaning the war continues unabated, leaving Ukraine vulnerable to more attacks. Zelensky complains bitterly daily to Russian air strikes but does nothing to end the war. Putin put his cards on the table what he needs to end the conflict. Putin asked Zelensky in any settlement to remove his troops from Donetck and Luhansk, both areas Kiev hasn’t controlled since the 2014 Maiden Revolution when US.-backed Ukraine troops ousted Kremlin Ukraine President Viktor Yanukovych. Right after the war started Feb. 24, 2022, Putin asked Zelensky to grant independence to Donetsk and Luhank but opted instead to go to war with the Kremlin. Four years later, Putin has destroyed Ukraine and taken some 25% of Ukraine’s sovereign territory.
Macron realized that there’s no quick fix for Ukraine with France and the EU incurring more sovereign debt to continue the war. When it comes to seizing Russia assets, Macron listened to Beligium Prime Minister Bart De Wever who said it would have catastrophic consequences to the EU’s economic standing. Zelensky doesn’t care about the EU’s credit rating, or more to the point, defaulting on debt promised to the EU. Belgium, that holds $185 billion euros of Russian cash, wants no part of seizing Russian assets to pay for Zelensky’s war. Zelensky has a way out of the conflict, just has refused, with EU backing, to join Trump’s peace talks. Trump told Zelensky that he cut his losses, compromise on land and end the war with Russia. Every day that goes by, Zelensky looses more sovereign territory, kills more of his countrymen and loses more sovereign land to Russia.
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.
