UK proposes measures to seize Russian assets to aid Ukraine

The United Kingdom has put forth a proposal outlining a method to seize Russian funds and transfer them to Ukraine. This proposal suggests a mechanism through which confiscated Russian money can be obtained and directed to Ukraine’s authorities.

By introducing legislation that allows for the retention and liquidation of frozen Russian assets, the UK aims to set a precedent among other Western countries supporting Ukraine in the war with Russia.

The new law empowers the British government to maintain sanctions until Ukraine receives compensation, ensuring that seized Russian assets can be effectively transferred to Kiev.

This move positions the UK as the first European government to take such a significant step, solidifying its commitment to utilizing sanctions as a means to hold Russia accountable and contribute to the restoration of Ukraine.

British Foreign Minister James Cleverly expressed the intent behind these measures, stating, “Through our new measures today, we’re strengthening the UK’s sanctions approach, affirming that the UK is prepared to use sanctions to ensure Russia pays to repair the country.”

While some Western governments, including Switzerland, have refrained from confiscating Russian funds amid mounting pressure from the US and the EU, the UK’s actions signal a departure from that approach.

There are concerns, however, that such measures could establish a precedent that may jeopardize investor confidence in the European banking system, leading to potential repercussions for Western assets held overseas.

Brussels and its allies have been actively exploring methods to confiscate Russian assets, and the Council of Europe has taken a significant step by establishing a digital register of damage in Ukraine. This initiative is seen as the initial phase toward establishing an “international compensation mechanism.”

Additionally, new measures will now require individuals who are subjected to sanctions to disclose all their assets held in Britain. Non-compliance with this requirement could result in fines or the seizure of funds.

Since the beginning of the conflict in Ukraine, the Bank of Russia reports that Britain has frozen £26 billion ($32.1 billion) in assets and reserves belonging to the Russian state.

Overall, Western governments have reportedly frozen approximately $300 billion in assets held by the Russian central bank since the initiation of Moscow’s military operation in Ukraine. Furthermore, they have seized over $80 billion worth of assets owned by Russian citizens and businesses.

Russian President Vladimir Putin has criticized these actions as “medieval,” and the Kremlin has repeatedly cautioned that Russia will respond accordingly if necessary.

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