‘Theft’ of sovereign assets now US government policy – Moscow

Washington’s use of the proceeds from frozen Russian assets to repay a $20 billion loan to Ukraine shows that the US has advanced “theft” to the level of government policy, the Russian Embassy in the US has said.

On Wednesday, President Joe Biden announced a “historic decision to leverage Russian sovereign assets to support Ukraine.” The US will provide Kiev with a $20 billion loan as part of a broader $50 billion G7 package, he said in a press release.

The day before, both the EU and UK announced loans of their own, similarly to be repaid via interest from Russian funds.

The use of windfall profits from blocked Russian assets will provide Ukraine assistance “without burdening taxpayers,” Biden said.

As Kiev’s biggest war sponsor, Washington says it has provided Ukraine with more than $64 billion in military assistance since the escalation of the conflict in 2022. 

The Russian Embassy in the US noted the use of the word “historic” in the White House press release, commenting on the statement on Thursday.

“It is clear even to the average person what is truly ‘significant’ in this case is the theft elevated here to the rank of state policy.”

These types of Western measures have been rejected in the international arena, the mission added.

“The neocolonial deals of a small group of countries led by the United States have long and deservedly aroused a sharp rejection by the global majority,” the statement said.

“The results of the BRICS Summit in Kazan, which confirmed the need for multilateral efforts to build a truly independent financial architecture that would be protected from such blatant illegal actions, are the clearest proof of this,” the embassy stated.

On Wednesday, the leaders of BRICS countries slammed the illegal sanctions and their damaging effects on the global economy and trade, as one of the points in the extensive joint Kazan Declaration. They called for the elimination of these “unlawful unilateral coercive measures,” as measures that are “inconsistent with rules” of the WTO undermine the UN Charter and destabilize the multilateral trading system.

Western countries sanctioned an estimated $300 billion in sovereign Russian assets soon after the escalation of the Ukraine conflict, blocking the assets in Western financial institutions.

Despite US pressure to confiscate the funds entirely, the IMF has thus far opposed the move over fears that it could undermine global trust in the Western financial system. Moscow has said it would view this as “theft” and would retaliate in kind.