The United States is eyeing the Russian central bank s 300 billion in overseas assets, and the Russ

Mondo Finance Updated on 2024-01-30

On November 16 this year, the diplomatic circles of Russia and the United States ushered in a special day: the 90th anniversary of the establishment of diplomatic relations between the United States and the Soviet Union. And now, Russia and the United States are experiencing a serious crisis in relations. Russia's deputy minister, Sergei Ryabkov, has previously warned that relations between the two countries are "in danger of being severed at any time" and that one of the possible "red lines" is the US confiscation of frozen Russian assets.

A number of Western ** reports said that due to the imminent exhaustion of aid funds for Ukraine, the United States has "calculated" about $300 billion in frozen assets of Russian ** banks, and wants to urgently negotiate with allies on the use of this money to aid Ukraine. In its editorial, the Financial Times warned that some EU countries do not support this idea due to a lack of legal justification, and that such a move could set a terrible precedent and undermine the global financial architecture.

On December 22, local time, Ryabkov once again made it clear in an exclusive interview with Interfax that if the United States confiscates Russian assets frozen on the grounds of the Russia-Ukraine conflict, then Russia may sever diplomatic relations with the United States.

In addition to this, he said, there are many things that could become the "fuse" for a complete rupture of Russian-American relations, and Russia is "ready for any scenario." "Diplomatic relations are not some totem to be worshipped, or a sacred object to be protected by everyone. He also warned that the United States should not have the illusion that Russia, as it says it is, is clinging to diplomatic relations with the United States with both hands.

Data map: Russian Deputy Minister Ryabkov The picture is from the surging image.

In this exclusive interview, Interfax once again referred to Ryabkov's previous remarks and asked him whether there is still a "boundary" that once crossed, it will no longer be possible to maintain Russian-American relations, and whether there are other factors that have led to the breakdown of Russian-American relations.

In this regard, Ryabkov first frankly admitted that the current Russian-US relations have indeed fallen into a "coma," and all this is caused by the fault of the US side, and Washington has not only formulated but even further deepened this erroneous and dangerous strategic framework for attacking Russia in terms of theory and concept.

In his view, the current Russian-American relations are at a level of "near zero", which is due to the fact that the United States continues to provide military and financial assistance to Ukraine in the Russia-Ukraine conflict, and Russia will not be the party that caused the rupture of diplomatic relations between the two countries, which may be triggered by a variety of factors.

The trigger for the rupture of Russian-American relations could be the confiscation of (Russian) assets (by the United States), the further escalation of the (Russian-Ukrainian) military conflict, and many other things. I'm not going to do a negative ** here.

Of course, diplomatic relations themselves are not some kind of totem to be worshipped, nor are they sacred objects that everyone has to protect, but we do not take the initiative to destroy them or tear them apart. Doing so is inconsistent with our rules, including our understanding that Russia and the United States play a central role in maintaining international security and strategic stability. ”

In conclusion, Ryabkov stressed that Moscow is "ready for any eventuality" and that the United States should not have the illusion that Russia, as it says it is, is clinging to diplomatic relations with the United States with both hands.

Recently, Ukraine's aid funds from the United States and the West have been in an emergency, and the US Congress and the EU summit have successively rejected aid funds worth more than $110 billion. According to the Financial Times on December 16, after the aid plan to Ukraine was put on hold, the G7 countries led by the United States started the idea of Russia's sovereign assets. At present, about $300 billion in assets of the Central Bank of Russia are frozen by the United States and Europe.

According to the report, although neither the United States nor Europe has publicly stated its position, in recent weeks, as the latest aid plans of the United States and the European Union have been stranded one after another, calls for the seizure and misappropriation of Russian sovereign assets have become louder.

Data map: Bank of Russia ** The picture is from the surging image.

According to an internal U.S. Treasury Department report seen by the Financial Times, the U.S. believes that "as a countermeasure consistent with international law, G7 members and other affected countries can seize Russia's sovereign assets in order to force Russia to end its aggression." The document has been circulated among the G7 members, and the US side declined to comment.

A U.S.** confirmed that the U.S. is in active dialogue with G7 countries on the use of Russia's sovereign assets, and revealed that countries may discuss this issue at the G7 summit to be held in February next year, on the occasion of the second anniversary of the Russia-Ukraine conflict. The goal in the coming weeks will be to resolve all key issues so that the G7 can act together, the first said.

Since then, the New York Times has also quoted the United States and Europe** as saying that because the aid funds for Ukraine will run out, the United States ** has begun urgent negotiations with its allies on the use of frozen Russian assets to aid Ukraine. The report notes that the White House "quietly signaled" support for the use of frozen Russian funds.

In an editorial published on December 22, the Financial Times pointed out that EU countries such as Germany and France are in fact "reluctant" to the United States to confiscate and embezzle hundreds of billions of dollars in Russian assets. Moreover, it is worth being highly vigilant that such a move could set a terrible precedent and undermine the global financial architecture.

A country's bank reserves are generally considered to be protected by sovereign immunity, which means that a country's national courts cannot make judgments on the actions of another country, nor can they use their assets to enforce judgments. Although the US wants to enact a so-called "law", claiming that this move will be a "reasonable countermeasure" against Russia's attack on Ukraine and a serious violation of international law, many legal scholars still question this.

In response to a reporter's question on December 22, local time, Dmitry Peskov, Russia's press secretary and Kremlin spokesman, also stressed that any such move would deal a serious blow to the global financial system.

If somebody is going to confiscate any of our assets, then we're going to see what we can do in response. If we find out, we take immediate action. As a result, there are serious consequences for such initiatives. Peskov said solemnly.

According to Reuters, Russia is also fighting back in various ways in the face of Western sanctions, which are aimed at punishing Russia for launching a "special military operation" against Ukraine and hindering its ability to obtain funds for the conflict.

Just this week, Vladimir Putin signed a decree to state the stakes in Russian gas projects from Austria's OMV and Germany's Wintershall Dea. This means that the two companies have officially lost their stake in the gas extraction project in northern Russia.

This article is an exclusive manuscript of the Observer.com, and it is not allowed to be unauthorized and shall not be allowed.

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