“President Zelensky Advocates Using Seized Russian Billions to Rebuild Ukraine, Faces Resistance from G7 Amid Concerns Over Financial Stability”
Ukrainian President Zelensky has called for the full utilization of seized Russian assets, amounting to $300 billion, to reconstruct Ukraine, emphasizing that Western taxpayers should not bear the financial burden of the conflict. While the G7 considers only using the accrued interest since the assets were frozen in 2020, Zelensky argues for tapping into the entire fund.
The proposal faces skepticism from Europe’s central bankers, who are wary of setting a legal precedent that could undermine the safe haven status of banks. Despite enthusiasm from the US and UK governments, concerns about potential repercussions on global financial stability linger.
Belgium, a significant holder of frozen assets, has already applied charges to some funds, raising €2 billion for Ukraine. Zelensky met with Wall Street financiers at the World Economic Forum, urging the global financial community to support the initiative. However, some, like Standard Chartered’s Bill Winters, express mixed reactions, citing concerns about potentially weaponizing central banks and currencies, further complicating the geopolitical landscape.