President Putin's surprising words about the frozen $300 billion: 'That could be a good thing'
Russian President Vladimir Putin has warned that any attempt by the West to seize Russia's frozen reserves would be "robbery" and would cause an irreversible change in the global payments system. But, surprisingly, he said it could ultimately be good for the world economy.
Speaking at the Eurasian Economic Forum in Minsk on June 26, President Putin referred to the constant discussions in the West about “how to steal our money.” He said that once that happens, “the shift to regional payment systems will accelerate and inevitably become irreversible.”
“Perhaps it is even worth paying the price,” Mr. Putin argued, suggesting that getting rid of dependence on the Western financial system is a strategic goal for Russia. He asserted that Moscow is “determined to continue strengthening its own financial and payment instruments.”
The Russian leader also corrected the Western terminology. “Theft is the secret taking of property – this is an open act. This is robbery,” he said.
An estimated $300 billion in Russian assets have been frozen by the West since the Ukraine conflict escalated in February 2022. Of these, about 200 billion euros ($209 billion) are held by Euroclear, a clearinghouse based in Brussels, Belgium.
EU officials, notably foreign policy chief Kaja Kallas, have repeatedly called for the money to be used to rebuild Ukraine. However, some EU member states have been hesitant due to concerns about violating international legal norms and damaging confidence in the European financial system.
The International Monetary Fund (IMF) has also warned that outright seizures could undermine global confidence in Western financial institutions.
Although the asset seizure discussions have dragged on for more than three years without a final resolution, some of the profits from these assets have been used. In July last year, Euroclear transferred $1.63 billion in profits from the frozen assets to Kiev to guarantee a $50 billion loan from the G7 to Ukraine.
For its part, Moscow has strongly condemned the asset freezes and hinted at possible retaliatory measures targeting Western investments and assets in Russia.