Russia Warns Of Eroding Trust In Dollar, Euro Over Potential Asset Seizure To Aid Ukraine: 'The Reliability...Has Been Undermined'

Russian Finance Minister Anton Siluanov has warned that the potential seizure of Russia’s frozen assets is causing a decline in global trust in major Western currencies.

What Happened: Siluanov, in an interview with RIA Novosti, expressed concerns about the trustworthiness of the dollar and euro, attributing the decline to the ongoing discussions about the $300 billion in Russian assets that were frozen in response to the 2022 invasion of Ukraine, reported Bloomberg.

"The Chinese are reducing their participation in American securities — this is a consequence of what is happening," Siluanov said. "The reliability of the dollar and euro has been undermined."

These frozen assets, along with other sanctions imposed by the U.S. and its allies, have been a significant factor in the global trend of de-dollarization. Countries are diversifying their reserves away from the dollar to avoid a similar fate as Russia, turning to alternatives like gold.

Despite concerns that using these assets for Ukraine’s financial needs could undermine financial stability, leaders in Europe and the U.S. are considering this as a viable solution to the waning international support for Kyiv.

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Secretary of the Treasury Janet Yellen has urged her Group of Seven counterparts to utilize the immobilized funds, emphasizing the “strong international law, economic and moral case for moving forward.”

Why It Matters: The potential seizure of Russia’s frozen assets has been a matter of global concern, with various countries and organizations proposing different solutions.

Recently, UK Prime Minister Rishi Sunak voiced his support for sending billions in interest from these assets to Ukraine, calling for a more assertive approach in seizing the assets themselves.

Meanwhile, the U.S. has disrupted Russia’s financial flows through warnings to global banks of potential sanctions, significantly impacting financial transactions between Russia and other countries.

Moreover, the U.S. and its allies have been working to disrupt Russia’s covert oil fleet, part of a broader strategy to limit Russia’s ability to trade its crude oil.

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Putin Photo by Asatur Yesayants on Shutterstock