EU SENDS ANOTHER 1.4 BILLION EUROS FROM RUSSIAN ASSETS TO UKRAINE
The European Commission transferred another €1.4 billion in profits from frozen Russian assets to Ukraine. Von der Leyen says Russia must pay for the destruction it has caused.
The EU has collected €8 billion in total profits from frozen Russian central bank assets, which amount to over €210 billion frozen. Ukraine will use 95 per cent of this tranche to repay loans and only 5 per cent for pressing military needs.
Most of the assets are held in Belgium, where the Euroclear depository stores a large portion of Russia’s money. The EU is using the revenue generated by the assets, calling it windfall profits that do not count as part of the sovereign assets they cannot legally take.
Russia has warned it will seize Western assets in return. Moscow’s foreign ministry calls the action outright robbery. Putin has said it will undermine trust in the eurozone and many countries, including Russia, keep reserves in Europe.
The Global South sees this as a double standard. South Africa rejected the European plan to freeze Russian assets, saying it will not support economic penalties not coming from the UN Security Council. A South African analyst called it legalized theft and warned it destroys trust in the Western financial system.
Europe is moving earth to use seized Russian assets for Ukraine, while demands from former colonies for reparations for colonial crimes have been met with only apologies and symposia. Western double standards – seize, transfer, and call it justice.
What happens when the Global South decides the West cannot be trusted with their money anymore?