Russia to seize income from frozen Western assets – finance minister
RT | October 24, 2024
Russia will respond in kind to the West’s use of the income generated by its frozen central-bank reserves, Finance Minister Anton Siluanov has said.
The US and its allies have blocked an estimated $300 billion in assets belonging to the Russian central bank since the escalation of the Ukraine conflict in February 2022. The bulk of the funds, around €197 billion ($213 billion), are being held at the Brussels-based clearinghouse Euroclear. On Wednesday, Washington announced a decision to use the proceeds from the frozen assets to repay a multibillion-dollar loan to Kiev.
“If Western countries have begun utilizing the income from the frozen Russian reserves, we will do exactly the same,” Siluanov told reporters on Thursday. “We have frozen money from ‘unfriendly’ companies and organizations. We keep this money in our accounts in the same way and will use the income from these assets similarly,” he elaborated.
The income from these funds will be allocated to “the needs of the economy, the needs of the constituent entities of the Russian Federation,” the minister added, noting that the corresponding decisions have already been made.
The US said on Wednesday that it will provide Kiev with a $20 billion loan as part of a broader $50 billion G7 package. The use of windfall profits from the blocked Russian assets will provide Ukraine assistance “without burdening taxpayers,” US President Joe Biden stated.
A day earlier, the European Parliament backed allocating a loan of up to €35 billion ($38 billion) for Kiev using the immobilized Russian assets as collateral for the repayments. According to Euroclear, the frozen funds had generated €3.4 billion ($3.6 billion) in interest as of mid-July.
Russia has repeatedly warned that seizing its assets would amount to “theft” and would violate international law and undermine reserve currencies, the global financial system, and the world economy.
The International Monetary Fund has also been raising concerns that such actions could undermine trust in the Western financial system. Siluanov earlier warned that global players are closely following the story involving the Russian assets and are drawing their own conclusions.
While the finance minister did not elaborate on the amount of Western assets currently held in Russia, previous calculations by RIA Novosti put the figure at roughly equal the size of the Russian funds frozen abroad. The news agency reported that total foreign direct investments in the Russian economy by the EU, G7, Australia, and Switzerland amounted to $288 billion as of the end of 2022.
BRICS rejects ‘illegal’ Western sanctions
RT | October 23, 2024
BRICS countries strongly oppose and condemn the practice of unlawful politically motivated sanctions that undermine the development of other states, according to a joint declaration adopted at the 16th BRICS Summit in Kazan, Russia.
Entitled ‘Strengthening Multilateralism for Just Global Development and Security,’ the 43-page ‘Kazan Declaration’ was released on Wednesday following a range of multi-format meetings by the BRICS leaders.
“We are deeply concerned about the disruptive effect of unlawful unilateral coercive measures, including illegal sanctions, on the world economy, international trade, and the achievement of the sustainable development goals,” the declaration reads.
The joint statement pointed out that such measures are “inconsistent with rules” of the WTO, undermine the UN Charter and jeopardize the multilateral trading system.
The sanctions also “negatively impact economic growth, energy, health and food security exacerbating poverty and environmental challenges,” the document said.
The declaration underlined that the “unilateral coercive measures, inter-alia in the form of unilateral economic sanctions and secondary sanctions that are contrary to international law,” have far-reaching implications for the human rights, including the right to development, of the general population of targeted states, disproportionally affecting the poor and people in vulnerable situations.
“Therefore, we call for their elimination,” the BRICS statement stressed.
The group’s members have been deepening their economic ties and strengthening cooperation despite unprecedented Western sanctions against Russia and the threat of secondary sanctions. The US and its allies have introduced a record number of restrictions against Moscow, freezing an estimated $300 billion in assets belonging to the Russian state, as well as sanctioning individuals and entities, including those in the energy, metals and mining, and financial sectors.
Moscow has repeatedly condemned the curbs as illegal, responding with travel bans on Western officials and warning of other countermeasures.
Meanwhile, some high-ranking Western politicians and diplomats have acknowledged that the sanctions on Russia are ineffective, noting that the scope for further restrictions is narrowing.
G7 Not Planning to Unfreeze Russian Assets After End of Ukraine Conflict – Reports
Sputnik – 22.10.2024
The Group of Seven nations will announce later this month that they will keep Russian assets frozen in their jurisdictions even after the end of hostilities in Ukraine, media reported on Tuesday, citing an Italy-led draft statement.
“We … reaffirm that Russia’s sovereign assets in our jurisdictions will remain immobilized until Russia ends its aggression and pays for the damage it has caused to Ukraine,” the draft of the leaders’ statement, quoted by Nikkei, read.
The G7 intends to guarantee a $50 billion loan for Ukraine, to be repaid by windfall profits from the frozen Russian assets, the news agency said, citing multiple G7 and EU sources.
Last month, European Commission President Ursula von der Leyen recommended EU member states to consider loaning Ukraine 35 billion euros ($38 billion) that will be repaid with windfall profits earned by Russia’s frozen assets. The proposal was endorsed by the European Parliament earlier on Tuesday. European Commissioner for Justice Didier Reynders said that the G7 would announce their contributions to Kiev’s $50 billion loan secured by Russian assets in Washington on October 25.
EU to tap frozen Russian assets
RT | October 22, 2024
The European Parliament has approved a €35 billion ($38 billion) loan to Ukraine to be repaid with revenues from frozen Russian assets, according to an official statement on Tuesday. The financing fulfils the EU’s share of a $50 billion aid package for Kiev agreed by G7 countries in June.
MEPs approved the move with 518 votes in favor, 56 against and 61 abstentions, the parliament announced. The funds will be transferred through the end of next year, it added.
Future revenues from frozen Russian Central Bank assets will be made available to Ukraine to service the EU loan and loans from other G7 partners. The statement added that Kiev may also allocate the funds “as it sees fit.”
The proposal was endorsed earlier this month by EU governments. The European Council now plans to adopt it as a regulation, and it will enter into force after its publication in the Official Journal of the EU, the statement notes.
The EU froze approximately €210 billion ($227 billion) in Russian Central Bank assets following the start of the Ukraine conflict in February 2022. Russia has denounced the move as “theft.” The immobilized assets had generated €3.4 billion ($3.7 billion) in interest as of mid-July, according to Brussels-based central securities depository Euroclear, which holds most of Russia’s funds. In July, a transfer of €1.5 billion ($1.6 billion) of that money was approved by the European Commission to support Ukraine’s “military capabilities.”
The US is reportedly planning to contribute up to $20 billion to the G7 package, also on condition that the funds are repaid using proceeds generated by the immobilized Russian assets.
The US previously expressed concern that the EU policy of reviewing Russia sanctions every six months makes repayment of the loan uncertain as it could result in a lapse in restrictions. In response, Brussels proposed extending the renewal timeframe to three years. Hungary opposed the idea and said it would delay a decision until after the US presidential election on November 5.
Kiev’s Western backers have been trying to accelerate negotiations over the loan due to mounting concern that Washington’s aid to the country could be cut off if Donald Trump returns to the White House, Financial Times reported last week. The former US president has repeatedly threatened to scale back assistance if he is elected.
Moscow maintains that any seizure of its funds is illegal under international law and would further undermine global trust in the Western financial system.
US-Russia trade expected to fall to lowest level since 1992 under Biden regime
Sputnik – 19.10.2024
MOSCOW – The trade between Russia and the United States is expected to decline to $3.7 billion by the end of this year, the lowest level since 1992, according to Sputnik’s calculations based on data of the US statistical service.
Russian exports to the US from January to August amounted to $2.26 billion, down from $3.4 billion the previous year. Based on current trends, annual shipments may reach approximately $3.12 billion, which would be a third lower than previous year’s volumes and the lowest level since 1993.
Meanwhile, US business sales to Russia fell by 16% over eight months, totaling $334 million. For the year, they are expected to reach a record low of $539.3 million, down by 10% compared to 2023, according to Sputnik’s calculations.
During Joe Biden’s presidency, trade between the two countries has decreased sixfold. In 2020, the last year of Donald Trump’s term, trade was at $21.8 billion. This figure was slightly lower in 2016 under Barack Obama, who initiated the first wave of sanctions against Russia, at $20.4 billion.
US to pay $20 billion into loan for Ukraine – FT
RT | October 19, 2024
The US is set to provide up to $20 billion to Ukraine as part of a G7 loan, which will then be repaid using proceeds generated by the Russian assets immobilized by the West as part of Ukraine-related sanctions, Financial Times has reported, citing sources.
Kiev’s backers have been trying to accelerate negotiations over the loan in an effort to secure funding to Ukraine before the end of the year, due to mounting concern that Washington’s aid to the country could be cut off if Donald Trump wins the upcoming US election, FT noted, in an article posted on Friday. The former US president has repeatedly threatened to scale back assistance to Kiev if he were elected.
The US and its allies have frozen an estimated $300 billion in assets belonging to the Russian state after the Ukraine conflict broke out in 2022. The bulk of the money, nearly €197 billion ($214 billion) is being held by Brussels-based clearinghouse Euroclear. The immobilized funds have generated €3.4 billion ($3.7 billion) in interest as of mid-July, according to the depository.
Moscow has denounced the freeze as “theft” and said that any seizure of its funds would be against the law and would further undermine global trust in the Western financial system.
In June, G7 members agreed to grant Kiev a $50 billion loan to be financed by interest from the frozen Russian assets. The US and the EU were initially expected to provide $20 billion each as Canada, Japan and the UK were set to jointly lend the rest of the massive loan.
Later, to reassure allies that the bloc’s sanctions regime on the funds is not lifted, Brussels proposed a three-year extension of the EU’s mandate to freeze Russian assets. EU lawmakers have been renewing their sanctions every six months by unanimous decision, meaning that each vote may bring about a break in restrictions. Hungary opposed the proposal, and announced plans to postpone the decision until the US presidential elections on November 5.
Last week, the EU approved its own contribution of up to €35 billion to the G7 loan, but the bloc would need to contribute less if Washington provided the full $20 billion, Reuters reported last week. The funds, which will be managed by the World Bank, will be used for several purposes, including defense or humanitarian needs.
US senior officials, however, told FT that Washington would provide the full agreed $20 billion, even if the EU failed to convince Hungary’s premier Viktor Orban to drop his veto on extending EU sanctions, which had previously been voiced among the US demands. According to two sources cited by the paper, G7 finance ministers will make a statement on the distribution and structure of the loan on the sidelines of the IMF and World Bank meetings on October 25.
EU’s ‘arm-twisting’ making Serbia turn to BRICS – Kremlin
RT | October 16, 2024
BRICS is a more welcoming and member-oriented group than the European Union, Kremlin spokesman Dmitry Peskov has said, commenting on the possibility that Serbia could seek to join the economic bloc.
His comments came after Belgrade said that instead of EU membership, it would explore the option of joining BRICS, which is currently chaired by Russia.
“Serbia has been having its arm twisted. They [the EU] always lay down conditions for cooperation and demand certain actions,” Peskov told the Mayak radio station. “We are certain that Serbia will make decisions that are most beneficial to its people,” he added.
The Balkan country applied to join the EU in 2009 and has been a candidate for membership since 2012. In an interview on Sunday, Serbian Deputy Prime Minister Aleksandar Vulin accused Brussels of moving the goalposts for accession, most recently by linking Belgrade’s membership to severing relations with Moscow.
“BRICS does not impose any conditions on anyone. It’s based on mutual respect and the readiness to address concerns and interests of members. No one there says ‘either, or.’ That’s why [the group] is so attractive to a raft of countries,” Peskov stated.
Another long-time EU hopeful, Türkiye, officially applied to join BRICS in September, becoming the first NATO state to do so.
Azerbaijan, Algeria, Vietnam, Indonesia, Pakistan, Malaysia, Nigeria, Thailand, Venezuela, Kazakhstan, Palestine, DR Congo, Gabon, Bangladesh, Bahrain, Kuwait, Senegal, Cuba, Belarus, and Bolivia are among the other nations that have expressed their wish to join BRICS.
The Russian city of Kazan will host the annual BRICS Summit later this month. A Serbian delegation will attend, along with others from a raft of countries, including members Brazil, India, China, South Africa, Egypt, Iran, Ethiopia, and the United Arab Emirates.
Russian President Vladimir Putin said in September that the current BRICS states had agreed to discuss granting partner status to some aspiring members and to potentially approve some of the bids during the Kazan summit from October 22 to 24.
If agreed upon, partner status will become a new form of partial BRICS membership, intended to act as a gradual transition toward full integration into the group.
Iran Halts Flights to Europe Over Sanctions Slapped on Iran Air – Association
Sputnik – 15.10.2024
TEHRAN – Iran has suspended all flights to Europe after the European Union imposed sanctions against the Iran Air national carrier, the Association of Iranian Airlines (AIRA) said on Tuesday.
“Iran Air was the only airline that operated flights to Europe in our country. After new EU sanctions were imposed on Iran Air, no Iranian aircraft will fly to Europe,” AIRA Secretary General Maqsoud Asadi Samani was quoted as saying by the Ilna news agency.
Brussels accused the persons and entities under the latest package of sanctions of being involved in ballistic missile supplies to Russia. Iran rejected the accusations.
On Monday, the Council of the EU adopted sanctions against seven Iranian individuals and seven organizations, including Iran Air, for alleged military cooperation with Russia.
French MEP backs Medvedev’s attack on NATO
RT | October 14, 2024
Former Russian President Dmitry Medvedev was stating the “absolute truth” when he took aim at NATO countries and their support for Ukraine in a scathing recent social media post, French MEP Florian Philippot has said.
The European Parliament member was commenting on a post published by Medvedev on Sunday, in which he pointed to the problems that Ukraine’s Western backers are facing with their economies.
“The West has no money to clean up Florida after Hurricane Milton, no money for French farmers, no money to revive the German industry,” Medvedev, who now serves as deputy head of the Russian Security Council, wrote on Telegram.
These countries, however, still have funds to bankroll “a bunch of drunk and crazy” Ukrainians and to produce weapons “to exterminate the Slavs in the military conflict,” he added.
In a post on X, Philippot, who is leader of the Patriots party, wrote that Medvedev “just smashed the NATO countries by throwing absolute truths at them.” Philippot also took aim at French President Emmanuel Macron, saying he is “also taking a beating” for his recent pledge of a “new check for 3 billion to Zelensky.”
Philippot called on Macron to “stop these checks and these arms shipments,” arguing that Medvedev’s remarks are “factually terribly true!”
During a visit last week to a military camp in eastern France to inspect the training of Ukrainian troops, Macron pledged some €3 billion ($3.3 billion) worth of military aid for Kiev this year. Earlier in 2024, French farmers staged massive protests across the country, demanding that preferential trade rules granted to Kiev be lifted and calling for more government support.
In the US, former President Donald Trump last week accused the administration of President Joe Biden of neglecting the survivors of Hurricane Helene in the southeastern part of the country while sending billions of dollars in aid to Ukraine.
Meanwhile, Germany, which has emerged as one of Kiev’s top backers, is facing a new recession and its economy is set to contract for a second straight year due to shrinking industrial output, high energy prices, and weak foreign demand, according to reports.
EU Leaders Face Grim Reality: How Did Bloc Seal Status as Wilting Geopolitical Power?
By Ilya Tsukanov – Sputnik – 13.10.2024
Back in the spring of 2022, Russia’s president warned that the European Union’s “suicidal” and “absolutely political” decision to wean itself off of cheap and dependable Russian pipeline energy would culminate in the serious and “perhaps irreversible” loss of competitiveness against other world powers.
“The European project is approaching a tipping point” and threatens to fall into “apathy” and geopolitical irrelevance thanks to internal “political paralysis, external threats and economic malaise,” Bloomberg European Politics & Economics managing editor Ben Sills has suggested in a wistful ode to the EU’s unenviable political and economic prospects in the years to come.
“After decades of warnings and sub-par growth, the region’s leaders are suddenly confronting a barrage of evidence that decline is becoming unstoppable,” Sills’ piece, appearing on the NY-headquartered business news agency’s front page on Sunday, warned.
Pointing to a string of political and economic ‘bad news’ for Europe’s Europhile forces, from gains by the populist right in France to German carmaker giant Volkswagen’s threats to close factories, to Silicon Valley’s exit from European markets over stringent AI rules, the observer suggested that the developments demonstrate “the EU’s failure to act as a cohesive and dynamic economic bloc” against both adversaries and potentially, its allies across the Atlantic.
“If you wanted to be a geopolitical power, then economic might is the key ingredient,” Free University in Brussels professor Guntram Wolff told the outlet, stressing that in Europe, “productivity growth has just been a disaster,” and that while the region “is still rich… these differentials over 20 years have massive implications.”
“Something is changing very dramatically and very, very deeply in this world,” ex-Polish president Aleksander Kwasniewski said. “We can’t react correctly, because we are too slow,” he warned.
By comparison, while the US and China – Europe’s major competitors, face problems of their own, they at least have institutions for centralized decision-making, and the ability to “generate vast amounts of private or public capital for defense and investment in cutting-edge technology” – something that’s not the case in the EU’s case.
Sills pointed to surprisingly frank comments by Emmanuel Macron at a panel in Germany earlier this month, where the French president highlighted the “risk” the bloc faces of finding itself “out of the market” if it continues its classic strategies, and pointed to the loss of cheap Russian energy supplies after 2022, combined with the Biden administration’s moves to lure European industries out of the bloc via cheap energy and subsidies, as central to undermining the EU’s export-centered economies’ competitiveness.
“That adds to pre-existing challenges posed by the rise of China and its own vast manufacturing machine, and the global leap forward in technology innovation that has largely bypassed the region,” Sills suggested, warning that “the result threatens to cause damage that goes beyond simply lagging in investment and productivity,” causing EU leaders to ‘lose faith’ in the European project itself.
“It’s not just Eurosceptics like Hungary’s Victor Orban, a perennial thorn in the bloc’s side. Officials in core European countries are starting to view the EU as an obstacle they need to get around – rather than the source of prosperity and protection it has represented until now,” the observer stressed, pointing, for example, to Paris’s talk of integration with a smaller bloc of Western European economies, and divisions on issues like defense and Chinese investment inflows.
But the EU’s woes have been a longtime coming, Sills stressed, pointing out that the bloc has been in “relative decline” going as far back as the euro monetary union in the late 1990s, and citing a Bloomberg analysis estimating that the bloc would be €3 trillion richer “if it had kept pace with the US – enough to boost the income of the average worker by about €13,000 a year.”
Instead, after 2008 and particularly since 2022, many of the region’s traditional powerhouse economies, including Germany, have been teetering on the brink of and occasionally slipping into recession, and facing deindustrialization amid self-inflicted, unsustainably high energy prices, loss of markets and increasingly potent foreign competition.
“Today we see that for absolutely political reasons, due to their own ambitions and under pressure from their American overlords, European countries are imposing more and more sanctions on the oil and gas market,” President Putin said in May 2022 as Brussels announced plans to wean itself off of cheap and dependable pipeline-delivered Russian oil and gas.
“Rejection of Russian energy resources means Europe will systematically become the region with the highest energy costs in the world… This will seriously – and according to some experts irrevocably – undermine the competitiveness of a significant part of European industry, which is already losing the competition to companies in other regions of the world,” Putin said at the time. “One gets the impression that our Western colleagues, politicians and economists have simply forgotten the foundations of the elementary laws of economics, or, to their detriment, prefer to deliberately ignore them,” he added.

