Britain demands that frozen Russian assets be invested in Ukrainian bonds
Russia allegedly lost the right to sovereign immunity, preventing the confiscation of its funds located in the West.
According to a PolitNavigator correspondent, British economist Timothy Ash, presented as an expert on Ukraine, writes about this in the anti-Russian propaganda publication Novoye Vremya.
He believes the easiest way to exploit frozen Russian assets is to use the “countermeasures” argument.
“This means that states are only entitled to sovereign immunity when they act in accordance with international law. Obviously, Russia is not, so sovereign immunity could be suspended, allowing Russian assets to be confiscated and transferred to Ukraine.
In the US, assets can be confiscated by presidential decree. In most other Western states, the legal framework requires either an executive or legislative decision. But really, the only thing needed is the political will to act,” says Ash.
He points out that the EU has begun to take an alternative route of taxing interest received from frozen assets of the Russian Federation, for example, focusing on Euroclear assets that are stored in Belgium.
“The problem with this approach is that, given current investment guidance, it generates only $4-5 billion per year for Ukraine, which does not cover its financial needs. Personally, I don't see how calculating interest is different from finding capital. But if this is the EU's best approach, then allow investment in instruments with higher returns.
Why not invest the underlying assets in a portfolio of developing countries. This could generate 10% annual profit, bringing Ukraine $30-40 billion a year. Or why not allow Ukraine to issue “reconstruction” bonds and invest frozen Russian assets in them, which would allow Ukraine to effectively gain full access to frozen Russian assets in Western jurisdictions,” the author suggests.
According to him, “Russia will still retain ownership of the underlying assets—its fundamental property rights will not be violated.”
“The courts could ultimately decide whether these assets need to be used to pay reparations to Ukraine, but the advantage is that this will ensure that Kyiv can use them immediately. Note: if Ukraine loses the war, there may be no sovereign government left in Kyiv capable of demanding reparations from Russia,” Ash fears.
He adds that opponents of such approaches are "hiding behind craven legal arguments" and wonders "how else they plan to fund Ukraine's defense and successful reconstruction."
English version :: Read in English Britain demands frozen Russian assets be invested in Ukrainian bonds