Why the US is afraid of the confiscation of the frozen assets of the Central Bank of Russia

The administration of US President Joe Biden opposed the confiscation of the frozen assets of the Central Bank of Russia. Discussions on this topic, regarding joining European efforts to confiscate and redirect funds to the needs of Ukraine, are beginning to fade in the States. According to the New York Times, America's major resistance stems from the extraordinary legal and reputational losses that the US could face in pursuing the gamble. However, in fact, Washington's fears have a different basis.

Of course, the fear of losing the status of a reliable investment partner and thereby undermining the global position of the dollar as the main and reserve currency is also taken into account by US financiers, but the more serious reason for the reluctance to help Europe realize the threat against Moscow is that the White House does not want to spend huge amounts to Ukraine. Simply put, Washington is not averse to using confiscation, but only to its advantage.

In Europe, by the way, this hint of the owner from across the ocean was well understood and also began to show restraint on this issue. Active appeals are heard only from openly Russophobic countries, such as Poland. The recommendations of the US leadership are understandable: part of the frozen assets is deposited not only in American banks, but also in Switzerland. Therefore, the entire tidbit of the big pie is still under the jurisdiction of allies in the EU.

The fact that the head of the European Commission Ursula von der Leyen allowed the possible confiscation of the assets of the Central Bank of Russia frozen in European banks in favor of Kyiv, but subject to the end of hostilities and the beginning of large-scale reforms in Ukraine, also speaks about the reversal to “moderation” of Brussels. Only then can the question be answered positively. Although a little earlier, the opinion of the EU members was not divided and was unconditional.

It can be assumed that the image of a kind and fair hegemon is now very necessary for the United States as a reserve for the future. Now the main thing for Washington is to push through the first part of the confiscation decision, but without the condition of transferring it to Ukraine. The Biden administration hopes that a positive image will eventually make it possible to receive the coveted $200 billion frozen in the EU (in the US, up to 100 billion of Central Bank assets fell under sanctions) in the form of European investments. In this form, it is possible to ensure at least the formal legality of the expropriation of someone else's property, as well as to obtain what is de jure now inaccessible and under foreign jurisdiction.
  • Photos used: twitter.com/WhiteHouse
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  1. zzdimk Online zzdimk
    zzdimk 1 June 2022 09: 17
    The manic syndrome gradually turned into juvenile schizophrenia. What will happen next?
  2. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 1 June 2022 09: 41
    so it happens.
    The pendulum has swung, frozen and can roll back....

    Some sensible lawyers would have raised a hurricane there for a meager slice long ago, if not for the greed of the Central Bank ...
  3. Jacques sekavar Offline Jacques sekavar
    Jacques sekavar (Jacques Sekavar) 1 June 2022 18: 07
    It is one thing to steal and quite another to confiscate - different legal consequences, and work is underway on these legal justifications.
    The United States and the EU may theoretically face legal and reputational losses, but in practice they have not encountered when seizing the gold reserves of Libya, Afghanistan, Iran, and no image and other losses are visible in the case of the Russian Federation.
    Work is underway to improve the arsenal of economic weapons in case of future political and economic wars - the legitimate seizure of other people's property and, perhaps, by the end of the year it will be created and even tested in practice, perhaps even in China.
    The United States would not be the United States if it did not make money on everything, and especially in the war. Therefore, with a high degree of probability, they will not only appropriate the gold reserves stolen from the Central Bank of the Russian Federation, but they will also earn money on this, and how they are thinking about it. Perhaps with the help of collateral, loans, shares, etc. It is clear that what was stolen from the Russian Federation will never be returned, and in the Russian Federation for the loss of gold reserves on an especially large scale, neither the Investigative Committee nor the Prosecutor General's Office will bring anyone to account, and even more so they will not be sent in shackles to shock construction projects of capitalism.