<p>Facing a prolonged war, international economic strategies are taking a new turn. The European Union has announced an ambitious plan to use the accumulated interest on frozen Russian assets to support Ukraine. This initiative has triggered a strong reaction from the Kremlin.</p>
<h2 id="h-european-union-announcement-and-russian-reaction">European Union announcement and Russian reaction</h2>
<p>Earlier this week, the European Union, through its high representative, Josep Borrell, confirmed the upcoming transfer of 1.4 billion euros in military aid to Ukraine. This amount will be funded by the interest on frozen Russian assets. The <a href="https://www.reuters.com/world/europe/kremlin-pledges-legal-action-over-planned-eu-transfer-ukraine-interest-accrued-2024-07-23/" target="_blank" rel="noopener noreferrer nofollow">affected assets</a> include various types of investments in which the Russian central bank had invested. These are mainly in the form of bonds and other securities.</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="1">
 </div>
</div>
<p>The accumulation of this interest, estimated between 15 and 20 billion euros by 2027, is seen by the EU as a crucial source of funding for the Ukrainian war effort. However, this initiative is viewed by Russia as a threat to the stability of the global financial system. The Kremlin immediately labeled this decision as a “theft”. It considers this measure as a blatant violation of property rights and international law.</p>
<div class="affiliate-button"><a class="affiliate-button__link" href="https://bitvavo.com/fr/affiliate/coinmedia?a=_cta" target="_blank" rel="noopener noreferrer nofollow">€20 bonus for registering on Bitvavo</a> <a class="affiliate-button__disclaimer" href="https://www.cointribune.com/en/sponsored-content/" target="_blank" rel="noopener noreferrer nofollow">This link uses an affiliate program.</a>
</div>
<h2 id="h-economic-countermeasures-considered-by-russia">Economic countermeasures considered by Russia</h2>
<p>The Russian Ministry of Foreign Affairs, through Maria Zakharova, mentioned a “broad arsenal” of economic and political countermeasures. These measures could include the potential confiscation of Western assets in Russia. This aggressive stance underscores Russia’s willingness to strongly retaliate against what it sees as unjust Western initiatives.</p>
<p>The financial standoff between the EU and Russia could lead to major repercussions on international relations. It could also affect the global perception of sanctions and asset freeze measures. The outcome of these tensions could also influence international economic stability. It can notably redefine the norms of economic conflict in wartime situations.</p>
<p>This situation illustrates the complexity of modern wars where the lines between battlefield combat and economic confrontations are increasingly blurred. While the EU seeks to bolster Ukraine, <a href="https://www.cointribune.com/en/russia-pleads-in-new-york-for-the-end-of-the-dollar-monopoly/" target="_blank" rel="noopener noreferrer nofollow">Russia</a> is preparing its defense not only on the battlefield but also on the legal and economic fronts. The coming months will be crucial to observe the implications of these financial strategies on the long duration of the Ukrainian conflict.</p>

Economy: The EU wants to use frozen Russian funds to support Ukraine

Mục lục

Cointribune EN

Các bài viết khác được xuất bản trên 24 thg 7, 2024

$1.64 Trillion Asset Manager Franklin Templeton Talks Solana, Sparks ETF Speculations

What do Bitcoin’s charts, Crypto Fear and Greed Index say about a trend reversal?

Bitcoin Price Ready For Takeoff As Shiba Inu And LUNC Burns Worry Community

Ferrari plans to extend its crypto payment infrastructure to the European market

Crypto social media signals are rising again on most major platforms

RiskLayer Gains Investment for Developing DeFi Security Middleware on EigenLayer

Tham gia bản tin miễn phí của chúng tôi để cập nhật tin tức về tiền điện tử hàng ngày!