Borrell proposed to follow the example of the United States in relation to the Central Bank of Afghanistan and transfer the frozen reserves of the Central Bank of Russia to Kyiv. The Russian Foreign Ministry said that the transfer of reserves would be the destruction of the “foundations of international agreements” .jpg” alt=”The Foreign Ministry called Borrell's idea of transferring Russia's reserves to Ukraine “illegal” />
View of the building of the Russian Foreign Ministry
The initiative of the head of European diplomacy Josep Borrell to transfer Russia's gold and foreign exchange reserves frozen in the EU to Ukraine is “Complete lawlessness and destruction of the foundations of international relations,” Deputy Russian Foreign Minister Alexander Grushko told reporters, TASS reports.
“This is the destruction of the very foundation of international relations, and these decisions, if taken, will hit the Europeans themselves, the financial system and undermine confidence in Europe and the West in general, because this is complete lawlessness and, rather, the law of the jungle,” — he said.
According to him, this is why a large number of countries, together with Russia, will “stand in defense of the world order based on international law.”
Earlier on May 9, Borrell said EU countries needed to consider withdrawing Russia's frozen foreign exchange reserves to help pay for the cost of rebuilding Ukraine after the conflict. Borrell cited “billions of dollars” of assets seized by the United States as an example. from the Central Bank of Afghanistan, which, according to him, will later be used to compensate victims of terrorism and for humanitarian assistance to the country. The diplomat noted that “it was logical” consider similar steps with Russia's frozen reserves.
According to the Central Bank, as of April 1, 2022, the volume of Russia's international reserves amounted to $606.5 billion. The Ministry of Finance previously reported that after the outbreak of hostilities, Western countries froze about half of Russia's gold and foreign exchange reserves (about $300 billion). At the same time, assets in Chinese yuan, monetary gold stored in Russia (as of February 1, about $132 billion), cash reserves and special drawing rights (SDR, about $24 billion) in the IMF remain legally out of reach for sanctions.
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Earlier, Ukrainian Prime Minister Denys Shmyhal said that the frozen Russian reserves should be transferred to Ukraine. “We are having these negotiations [on the withdrawal of Russian reserves] with the United States, with all our partners,” — he said.Ukrainian President Volodymyr Zelensky in early May estimated the cost of restoring the country after the Russian special operation at $600 billion.
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