Since Russia's military operation against Ukraine in 2022, the Western world has escalated sanctions against Russia, including the freezing of the assets of Russian** banks in international financial institutions. The move, which was supposed to weaken the Russian economy, sparked broader international financial turmoil and legal controversy.
Shortly after the outbreak of the war in Ukraine, the European Union and the United States moved quickly to freeze large amounts of assets at the Russian central bank. These assets were originally entrusted by Russia to Western financial institutions for investment, including financial products such as debt. The move is seen as a crippling economic sanction against Russia, aimed at weakening its war efforts and forcing it to surrender unconditionally.
However, over time, the effectiveness of these sanctions has been questioned. While it is true that the Russian economy has been hit to some extent, it has shown much more stability and resilience than expected. At the same time, the freezing of Russian assets in the Western world has sparked growing legal controversy and international criticism.
First of all, from a legal point of view, the freezing of Russian assets is suspected of violating international law. Under international law, States enjoy sovereign immunity over their property and are not subject to the jurisdiction of other States. Therefore, no country has the right to freeze its assets without the official consent of Russia. Moreover, the UN Security Council, the International Court of Justice or peace treaties signed by the parties are a legitimate way to deal with such issues, while the actions of the Western world in this regard clearly lack legitimacy.
Secondly, the freezing of Russian assets has caused serious damage to the reputation of the Western financial system. The Western world has long prided itself on its tradition of the rule of law and respect for rights. However, the illegal freezing of Russian assets has opened a light to the other side of the Western world – a powerful group that can deprive other countries of their property rights at will. Such an act will undoubtedly undermine trust in the Western financial system and accelerate the development of trends such as de-dollarization.
Moreover, if the Western world really transfers frozen Russian assets to Ukraine, then this will further exacerbate the turmoil in international financial markets. These funds are likely to be used for military purposes, such as the purchase of ** and ammunition, prolonging the armed conflict and exacerbating the humanitarian crisis. For Russia, the looted assets are likely to prompt more aggressive retaliatory measures, such as nationalizing the assets of Western companies in Russia.
It should be noted that the freezing of Russian assets in the Western world is not based on the "rules" of the international order, but on the logic of might and force. Such acts are no different from those of organized criminal groups and are in total contravention of international law and the basic norms governing international relations. If the Western world continues on this path, the end result will be self-destruction and isolation.
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