Tuesday03 December 2024
vesti.org.ua

Frozen Russian assets could be a key factor in ending the war in Ukraine, according to Reuters.

During his presidential campaign, elected U.S. President Donald Trump claimed that he could end the war in Ukraine within 24 hours. He cited one of the main reasons for this assertion as the unwillingness of the U.S. to continue funding military and economic aid to Ukraine.
Замороженные активы России могут стать ключевым фактором в окончании войны в Украине, - сообщает Reuters.
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This is reported by RBK-Ukraine citing Reuters. This information is also provided by Kontrakty.UA.

At that time, Trump hinted that with financial support from Europe, possibly funded by the frozen Russian currency reserves amounting to $300 billion, he could negotiate favorable terms for ending the conflict with Russian dictator Vladimir Putin.

This prospect raises concerns not only in Ukraine but also in the European Union and the United Kingdom. An agreement that weakens Kyiv's position could jeopardize the security of all Europe. However, analysts believe that if Europe shows a willingness to allocate significant funds to support Ukraine, it may force Trump to reconsider his plans.

Economic support from Europe could also signal to Putin that the West is prepared to continue a war of attrition, and that Ukraine is capable of holding the frontline despite the prolonged conflict.

One potential funding option is the use of frozen Russian assets. However, such actions face legal and political hurdles: EU countries fear that confiscation could violate international law and undermine trust in the euro.

An alternative could be to provide Ukraine with a reparative loan, under which Kyiv would pledge its claims against Russia for compensation. If Moscow refuses to pay, these claims would transfer to the G7 countries, which could then compensate them from the frozen assets.

Experts note that this approach would provide long-term support for Ukraine, strengthen the Western defense industry, and give Trump the opportunity to showcase his foreign policy approach under the banner of "peace through strength." However, implementing this plan would require the agreement of all parties and significant efforts to coordinate it.

Frozen Russian Assets

Since the beginning of Russia's full-scale invasion of Ukraine, Western countries have frozen the assets of the Central Bank of Russia amounting to approximately $300 billion. Part of the profits from these funds is already being directed to assist Ukraine.

In particular, the United Kingdom will allocate nearly $3 billion to Ukraine, using the frozen Russian assets.