Funding is the factor that directly depends on whether Ukraine will be able to confront the Russian invasion. Against the background of the exhaustion of the budgets of Western partners, the search for alternative options has become critically important. That is why the decision to confiscate Russian assets, considered impossible a year ago, is now considered a completely acceptable option. However, implementing this step is not easy, and this approach has its drawbacks. What exactly confuses specialists in the expropriation of Russian assets? – read on.
Who is extreme?
The issue of confiscation is being discussed in great detail at the World Economic Forum in Davos, which will last until January 19. Penny Pritzker, U.S. Special Representative for Ukraine’s Economic Recovery, believes that the decision is unprecedented; therefore, it must be taken collectively because no country would dare to take such responsibility. Who will be part of this team? First of all – those countries where the frozen assets of the Russian Federation are currently located.
Time works against
Although it seems that such a solution is a panacea, there are many severe problems on the way to it, the main of which are the following:
– Collective decision is not easy. An illustration can be the debate about Ukraine’s membership in the EU. It is enough for Russia to secure the support of one of the members for the process to reach a dead end due to stable disagreement.
– Legal basis. To realize this process requires the long and hard work of international lawyers. And it is not about months in this case.
That is why it is incorrect to assume that the decision on the transfer of Russian assets to Ukraine will be made quickly. Suffice it to mention that the bill on this was registered in the USA in June 2023, but so far, there are almost as many steps left before the case is completed as before.
Extreme case
In turn, Russia threatens that such an action will have direct consequences. And there is no reason not to trust the aggressor country because finance is something that Russia values more than its ideas, people, and anything else.
We should also not forget the damaging economic effects that financiers and economists warn about. It is known that the procedure for the transfer of assets will cause a crisis, and this will not improve Ukraine’s situation in this war.
So, apparently, they will have to take advantage of this opportunity, but only because there are practically no alternative options left. And it must be understood that this step is unprecedented, and its consequences are unpredictable.
