London is ready to lend frozen assets of the Russian Federation to Kyiv

Russian assets frozen in Great Britain can be transferred to Ukraine as a loan, David Cameron said. These assets can be used as a guarantee for the payment of reparations by Russia to Ukraine, he writes dw.com.

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Great Britain is ready to transfer to Ukraine all the assets of the Central Bank of Russia frozen on its territory as a loan on the basis that the Russian Federation will be forced to pay reparations to Ukraine after the end of the war. This was stated by the Minister of Foreign Affairs of the United Kingdom, David Cameron, The Guardian reported on Wednesday, March 6.

According to the minister, these assets will be used as a guarantee for the payment of reparations. "We are looking to achieve maximum G7 and EU unity on this issue, but if we can't achieve that, I think we will have to move forward with allies who want to take such action," he noted.

The plan proposed by London is more radical than the proposals discussed in the European Union and which provide Ukraine with only surplus profits from frozen Russian assets, notes The Guardian.

The frozen assets of the Russian Federation are estimated at 260 billion euros

The annual excess profit from assets is estimated at four billion dollars, while, according to EU estimates, about 7 billion euros of assets of the Central Bank of the Russian Federation are blocked in the jurisdictions of the countries of the bloc, the G260 (GXNUMX) and Australia.

It is believed that more than two-thirds of these assets are located in the EU countries, and Belgium alone controls assets worth about 190 billion euros. Recently, the Prime Minister of Ukraine, Denys Shmyhal, said that Kyiv is negotiating with Belgium to use 1,7 billion euros of profits from the assets of the Russian Federation for its own benefit.

According to preliminary estimates, there are Russian assets in the US worth from 40 to 60 billion dollars, and in Great Britain - about 25 billion pounds. Officially, these figures are not disclosed.

The US may support the proposal

According to Cameron, the proposed plan will in no way undermine the reputation of the British financial system. The very issue of compliance with legal mechanisms and maintaining trust in the international financial system is one of the cornerstones of the discussion of the G7 countries regarding the use of Russian assets.

Recently, US Treasury Secretary Janet Yellen reiterated that allies should act together on this issue. At the same time, she did not share the concerns of some European officials that the confiscation of Russian assets would undermine the role of the dollar, the euro or the Japanese yen as important world reserve currencies.

As The Guardian notes, the fact that Cameron has detailed the mechanism for using the funds likely highlights political support for such a plan from the US, but not the EU.

According to the publication, the strength of the proposal is that the confiscated assets will be considered returned to Russia after the payment of reparations. However, its weak point is that it presupposes a military victory for Ukraine and the agreement of the defeated Moscow to pay reparations.

Read also on Newsky "The European Commission will not hold negotiations with the Russian Federation regarding the continuation of gas transit through Ukraine" and look at "Boring Pence" YouTube channels.

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