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Financial Warfare Against Moscow: G7 Nations to Sieze Russian Assets to Fund War in Ukraine

AP Photo/Evan Vucci

Almost two years into the war in Ukraine, the US is struggling with funding Ukraine amid issues with the budget and the border and other issues of domestic and international concern.

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So the news that the US, along with other Western nations in the G7, are looking at a new source of funding for Ukraine: the $300 billion in frozen Russian assets. They're considering spending this money to continue funding the war:

The Financial Times reports:

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 Western nations are actively exploring ways to seize Russian central bank assets to fund Ukraine as political disputes in the US and Europe threaten its flow of financial support.G7 officials have intensified talks in recent weeks on spending some of the roughly $300bn in immobilised Russian sovereign assets, a radical step that would open a new chapter in the west’s financial warfare against Moscow.The push comes as two crucial financial aid packages for Ukraine worth more than $100bn faltered this week, as Republicans in the US Congress and Viktor Orbán of EU member Hungary took a stand against funding Kyiv.Seizing Russian assets could provide an alternative stream of funding for Kyiv, especially given the expected huge costs of postwar reconstruction.

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There are issues with using the frozen funds to finance the ongoing war.

This sounds a lot like civil asset forfeiture, on an international scale.

There's a lot of mistrust of Western nations for doing this, and people who aren't happy with the decision to use these assets to fund the war.

The reputation of the West is getting harmed by this.

The war has been going on for almost two years, and Ukraine is not anywhere near winning, even though Zelenskyy has said they will win, no matter what.

This is a fair point.

Only time will tell, but it seems unwise to keep poking the bear that is Russia.

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There is a possibility it could. Russia apparently has a hypersonic missile that can hit any global target within 30 minutes and, according to Putin, can't be stopped by any defense system. Seems risky.

It could be a very dangerous game.

That's one way of looking at it.

A fair point, we suppose.

Another question that won't be answered, most likely.

There are a lot of people who want to end the funding to Ukraine.

Others think this is the right move, especially since some nations, like the US, have hesitated on continuing to give funds to Ukraine.

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For who, is the question, we suppose.

Huh. Follow Canada. Interesting that the US didn't take the lead on this.

This seems to be the consensus.

There's always a risk of pushing Russia and China together over this, and then what lesson will they learn?

The US has sent $75 billion to Ukraine so far, so $300 billion in assets won't last too terribly long.

Others seem to share this sentiment.

Another question that probably won't be answered any time soon.

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Who knows? Who makes these decisions?

On one hand, yes, it makes sense to use these funds rather than make taxpayers foot the bill. On the other, using seized assets smacks of theft on an international level.

But there will be consequences for this. The only question that remains is: what and when?

***

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