UK will return Russian money it is ‘so generously giving away'
The UK's transfer of the proceeds from Russia's frozen central bank funds to Ukraine is a blatant violation of international law, Russian State Duma Speaker Vyacheslav Volodin has said.
On Friday, Ukrainian Prime Minister Denis Shmigal said that Kiev had received a first tranche worth about $1 billion from the UK, secured by the proceeds from the Russian assets. He said the funds would go toward 'strengthening' Ukraine's defense and voiced hope that all frozen Russian assets would be 'confiscated and transferred' to Kiev.
Speaking to reporters later in the day, Volodin said Britain 'will have to give back to Russia what they are now so generously giving away,' adding that Moscow has 'every reason to respond in kind.'
Volodin also warned that London's actions would 'undermine confidence' in its financial system, as they 'violate the principle of property inviolability, a cornerstone of the global financial system.'
Western countries froze around $300 billion in Russian central bank assets after the escalation of the Ukraine conflict in 2022. Of this total, more than $200 billion is reportedly held at the Brussels-based clearinghouse Euroclear, while up to $30 billion is in the UK.
The assets have already generated billions in interest. Euroclear transferred over $1 billion directly to Ukraine last July. Kiev has been pressing its Western backers to expropriate the assets to finance its military and reconstruction efforts.
The West remains divided over the fate of the frozen assets. Many EU countries are reluctant to tap the reserves themselves, opting instead for the interest earned on them. Some have raised concerns that seizing the assets could damage the Western financial system and erode trust in the euro. The International Monetary Fund has also warned that taking the funds without a clear legal basis could undermine global confidence in Western financial institutions.
The Kremlin has repeatedly denounced the asset freeze as 'theft' and warned of legal action against those involved in the asset seizure.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Russia Today
3 hours ago
- Russia Today
EU to sanction Nord Stream
The European Commission has proposed a ban on the use of Nord Stream gas infrastructure and a reduction of the price cap on Russian oil in its 18th sanctions package against Moscow, EC President Ursula von der Leyen announced on Tuesday. 'No EU operator will be able to engage directly or indirectly in any transaction regarding the Nord Stream pipelines. There is no return to the past,' she stated. Both pipelines were severely damaged in a series of underwater explosions in the Baltic Sea in September 2022. Since the sabotage, the pipelines have been out of service. The commission also intends to lower the price cap on Russian crude oil exports from the current $60 per barrel to $45. The cap, which was introduced in December 2022 by the G7, EU, and Australia, aimed to curb Russia's oil revenue while maintaining global supply. The new sanctions package also proposes a ban on the import of all refined goods based on Russian crude oil and sanctions on 77 vessels that are allegedly part of Russia's so-called 'shadow fleet', which Brussels claims is used to circumvent oil trade restrictions. The commission has also suggested expanding the EU sanctions list to include additional Russian banks and implementing a 'complete transaction ban' alongside existing restrictions on the use of the SWIFT financial messaging system. The restrictions would also apply to banks in third countries that 'finance trade to Russia in circumvention of sanctions,' according to the EC president. The draft sanctions package will next be put up for discussion among EU members and must be approved by all 27 EU states in order to pass. Previous rounds of sanctions faced resistance from countries such as Hungary and Slovakia, which argue that the restrictions harm the EU economy. Russia has dismissed the Western sanctions as illegitimate, saying pressure tactics are counterproductive. President Vladimir Putin has said the removal of sanctions is among the conditions for a settlement of the Ukraine conflict.
Russia Today
3 hours ago
- Russia Today
‘We will go deep into Pakistan' if provoked
Indian Foreign Minister S. Jaishankar has said the root causes of New Delhi's conflict with Islamabad remain unchanged and that India is ready to strike anywhere in Pakistan if provoked by terrorist attacks. In an interview with Politico in Brussels on Monday, Jaishankar claimed that Pakistan is openly training a large number of terrorists, estimated to be in the thousands, and deploying them to carry out attacks against India. 'We are not going to live with it. So our message to them is that if you continue to do the kind of barbaric acts which they did in April, then there is going to be retribution, and that retribution will be against the terrorist organizations and the terrorist leadership,' he said. 'And we don't care where they are. If they are deep in Pakistan, we will go deep into Pakistan.' He was referring to the recent military showdown with Pakistan, in which India launched strikes on suspected terrorist facilities in Pakistan-controlled territory on May 7 in response to a terrorist attack in Indian-administered Kashmir in April. The hostilities ended on May 10 when a ceasefire was announced. In the Politico interview, Jaishankar said the Indian military's air capabilities, including fighter jets and missiles, caused significantly more damage to the Pakistani Air Force than Pakistan had inflicted on India. The Indian foreign minister also spoke of New Delhi's efforts to boost its domestic manufacturing of arms and ammunition. Referring to Indian-made weapons, he said, 'some of them have been tested in the recent conflict with Pakistan' and have been 'very successful.' Jaishankar went on to say that some Indian defense companies want to work more with Europe with regard to design, though he does not see this as 'just buying more weapons from Europe.' The foreign minister also touched upon the Ukraine conflict, stating that India has never sought a role in it. 'If we can be of any help … we are open, but we are not pushing ourselves,' he said. Jaishankar added that India has been acting as a conduit between the two sides, keeping lines of communication open and occasionally relaying messages.
Russia Today
10 hours ago
- Russia Today
France can't afford military spending splurge
France may not be able to afford to ramp up defense spending under a broader EU militarization drive, the Financial Times reported on Saturday, citing experts. The country's growing national debt and large budget deficit present major obstacles to its rearmament goals, the newspaper noted. President Emmanuel Macron earlier proposed raising defense spending to 3-3.5% of GDP by 2030 – nearly double the current level – which would require an extra €30 billion ($34 billion) annually. However, experts told the FT that France's fiscal position is too precarious to go through with the plan. They noted that debt-to-GDP ratio hit 113% in 2024, one of the highest in the EU, while the budget deficit reached 5.8%, almost twice the EU's 3% cap. Interest payments on debt totaled €59 billion last year and are expected to reach €62 billion in 2025 – roughly the combined annual cost of defense and education. Experts also noted that the government is struggling to pass a deficit-reduction package, which reportedly features unpopular moves such as cuts to social spending, including pension tax breaks and healthcare subsidies. 'In France, and this is probably different than elsewhere, we cannot go back on our deficit reduction goals, nor can we raise taxes since they are already very high,' Clement Beaune, a former minister for Europe and Macron ally, who heads a government think tank, the told FT. Experts said France could apply for the EU's 'escape clause,' which allows countries to exceed deficit caps to boost defense budgets by 1.5% of GDP. However, they warned that the move is unlikely, as it could spook bond markets and drive up borrowing costs. Paris could also join another EU scheme offering loans for joint arms purchases. Experts, however, said that rising costs and inflation could mean France would end up with fewer weapons even if it boosts spending. Some described it as a 'bonsai army' – broad in scope, but limited in scale. France's rearmament plans come as the EU pushes for more spending and less reliance on US weapons, citing a supposed Russian threat. Moscow has repeatedly dismissed the claims as 'nonsense,' accusing the West of using fear to justify funneling public funds into arms. Russian officials have warned the EU's buildup risks wider conflict. Foreign Ministry spokeswoman Maria Zakharova recently said the bloc 'has degraded into an openly militarized entity.'
