Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

EU Should Seize Russian Forex Reserves, Says Bloc's Top Diplomat

Forex May 09, 2022 03:35AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Geoffrey Smith 

Investing.com -- The European Union should seize Russia’s foreign exchange reserves to pay for the reconstruction of Ukraine, the EU’s top diplomat said in an interview published on Monday.

“I would be very much in favour because it is full of logic,” Josep Borrell, the EU’s High Representative for Foreign Policy, told the Financial Times.

Russia holds over a quarter of its foreign reserves in Germany, France, and Austria. Around another quarter is held by G7 members – the U.S., U.K., and Japan.

Seizing reserves would face significant legal hurdles, and would risk undermining global trust in an international financial system that has run for decades on the assumption that reserves – essential for the smooth processing of global trade – were essentially inviolate, however bad relations between countries became.

However, the bloc faces few more attractive options for rebuilding Ukraine if and when Russian troops withdraw. In addition, there is precedent for such a step, when the U.S. set aside $3.5 billion of Afghanistan’s dollar reserves to pay compensation to the victims of the 9/11 attacks in 2001. The attacks had been planned from Afghan territory by Al Qaeda leader Osama Bin Laden.

Borrell’s warning was published on the 77th anniversary of the end of World War 2. Russian President Vladimir Putin will hold a closely-watched speech in Moscow later at festivities commemorating the event, that may send important signals about how Russia wishes to continue a war in Ukraine that it started 70 days ago.

 
EU Should Seize Russian Forex Reserves, Says Bloc's Top Diplomat
 

Related Articles

Dollar Edges Higher; Sterling Weak After GDP Fall
Dollar Edges Higher; Sterling Weak After GDP Fall By Investing.com - Aug 12, 2022 3

By Peter Nurse Investing.com - The U.S. dollar edged higher in early European trade Friday, rebounding to a degree after a two-day selloff as weaker than expected inflation data...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Robert Copeland
Robert Copeland May 09, 2022 8:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
That's an idea, however a bad precedent to set.
Chris Sundo
Chris Sundo May 09, 2022 5:27AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What's holding the EU back?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email