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Britain is ready to transfer Russian money to Ukraine: Minister Cameron reveals the mechanism

Roman KostyuchenkoNews
The UK is ready to give Ukraine Russian money
The UK is ready to give Ukraine Russian money

The United Kingdom is ready to transfer frozen assets of the Russian Central Bank to Ukraine - and not just the assets, but the income from them, as the EU plans to do. It is assumed that the money will be transferred in the form of a loan, which will have to be repaid in the future. However, it will not be Ukraine that will do this, but Russia itself, which will have to pay reparations for the war in the future.

This was announced by British Foreign Secretary David Cameron, The Guardian reports. He noted that in this way, Russian assets will be used as a guarantee that Russia itself will pay reparations.

It is likely to be about 25 billion pounds (almost $32 billion). However, official figures have not yet been made public. In the EU, for comparison, about $280 billion has been frozen, but they are still opposed to their confiscation.

"There is a possibility to use something like a syndicated loan or a bond that uses the frozen Russian assets as a guarantee that we will return them when Russia pays reparations. That may be the best way to get that money to the Ukrainians," Cameron said.

At the same time, Cameron emphasized that in his opinion, the transfer of Russian money to Ukraine would not undermine the reputation of the United Kingdom. At the same time, the authors emphasize that the implementation of this plan can greatly help Ukraine itself, especially "if the US Congress continues to block aid to Ukraine." After all, this way the country will receive a new source of funds for:

  • purchasing weapons;
  • financing the budget deficit.

The G7 cannot agree on the confiscation of Russian money for Ukraine

Cameron's statement came after it became known that there are disputes among the Group of Seven (G7) countries over the use of the frozen $280 billion of the Russian central bank to help Ukraine. To wit:

  • the United States and the United Kingdom are in favor of full confiscation of assets;
  • Themost ardent opponents of this idea are France and Germany, who are concerned about Russia's possible response to the confiscation.

Critics of the idea believe that confiscation will have a strong negative impact on the financial stability of the EU and the status of the euro as a reserve currency. The danger, they argue, is that such a move would set a dangerous precedent that would encourage other countries to avoid holding their reserves in Western currencies, Bloomberg analysts explained.

Confiscation of Russia's assets may be legal

Meanwhile, a group of international law experts has supported the idea of confiscating the frozen assets of the Russian Central Bank, which amount to about $280 billion. It is assumed that these funds can be used as compensation for the damage caused to Ukraine as a result of Russia's full-scale invasion.

Experts argue that the confiscation would be legal from the point of view of international law, as Russia has violated its fundamental norms. First of all, the principle of inviolability of Ukraine's territorial integrity and sovereignty.

According to Bloomberg, the opinion was signed by 10 prominent lawyers and diplomats from the United States, the United Kingdom, the EU, and Japan, including former legal adviser to the U.S. State Department under the Barack Obama administration Harold Hongju Koh and former strategic advisor to the Joe Biden administration Philip Zelikow.

Despite the fact that the analysis was requested by interested governments, including some members of the G7, the authors specifically stated: "None of us is acting on behalf of sponsors or clients." However, the letter states that Koch does represent Ukraine in some international tribunals.

As OBOZ.UA previously reported, Ukraine is asking foreign countries and their authorities to tighten sanctions against Russia and confiscate its assets. The corresponding resolution No. 11019 was adopted by the Verkhovna Rada.

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