0:01
when Russia invaded Ukraine the United
0:03
States and its allies responded
0:05
financially they froze billions of
0:08
dollars belonging to the Russian
0:09
government and Wealthy Russian Elites
0:12
all that money held in foreign Banks
0:14
Beyond Russia's Authority is now Beyond
0:16
limits to Moscow it's a significant
0:19
economic hit since Russia can't use that
0:21
cash to fuel the military effort by
0:24
securing that pot of riches the United
0:26
States and its allies are pinching
0:28
Russia's economy and undermining its
0:31
ability to continue fighting in Ukraine
0:34
denying them that cash Supply threatens
0:36
Russia's ability to continue its
0:38
military actions this asset freeze is a
0:41
potent weapon that shuts down a critical
0:43
resource stream that keeps Russia's
0:47
going at present the European Union and
0:50
the United States are implementing
0:52
different strategies regarding the $300
0:55
billion worth of Frozen Russian assets
0:58
the European Union's strategy focuses on
1:00
using the earnings generated by Frozen
1:02
funds rather than the principal amount
1:05
itself the EU has established
1:08
legislation that allows them to capture
1:10
these investment gains which are
1:11
projected to be worth more than4 billion
1:14
EUR per year the funds raised through
1:17
this means might then be channeled to
1:19
Ukraine's Rehabilitation via the EU
1:22
budget this strategy is viewed as slower
1:25
but maybe more legally sound on the
1:27
other hand the US is mulling a more
1:29
extreme dream approach directly taking a
1:31
portion of Russia's frozen assets this
1:34
strategy is seen as a faster option to
1:37
help Ukraine but it risks legal
1:39
difficulties and concerns about
1:41
jeopardizing the Dollar's Reserve
1:43
position the US authorities have yet to
1:46
make a definitive judgment regarding
1:48
confiscation there are several reasons
1:50
why seizing Frozen Russian cash is a
1:53
complicated matter first and foremost
1:55
legal challenges are important seizing
1:58
assets raises concerns about due process
2:01
as property rights are protected by law
2:03
and owners need an opportunity to fight
2:05
their assets seizure a seizure could be
2:08
challenged and reversed in court without
2:10
adequate legal proceedings this might be
2:13
a propaganda Triumph for Russia
2:15
undermining the entire Legal Foundation
2:17
for the sanctions imposed second
2:20
confiscation particularly without clear
2:23
standards establishes a hazardous
2:25
precedent threatening the rule of law it
2:28
might damage trust in the International
2:30
Financial system which traditionally
2:32
values private property if governments
2:35
take Assets in times of Crisis it may
2:37
discourage future foreign investment
2:39
finally the impact on the Dollar's role
2:42
as the world's principal Reserve
2:43
currency is a a major worry if the
2:46
United States begins liberally
2:48
confiscating assets it may alarm other
2:51
countries that keep their reserves in
2:53
dollars these countries May seek other
2:55
currencies viewed as safer potentially
2:58
undermining the dollars world worldwide
3:00
Supremacy the European Union confronts
3:03
substantial challenges in confiscating
3:05
the profits from the reinvestment of
3:06
Frozen Russian Sovereign assets for 2022
3:11
2023 totaling Euro 5.2 billion in the
3:15
forseeable future according to a
3:18
European official involved in developing
3:20
a process for expropriating Russian
3:22
money the EU will have challenges in
3:24
retrospectively seizing Revenue earned
3:26
before February 12th 2023 when the EU
3:30
decides on the status of income from
3:32
frozen assets the Belgian depositary
3:34
Euro clear has already declared this
3:36
Euro 5.2 billion as operating profit
3:40
which the Belgian government will tax
3:43
while the EU hopes to receive euro5 to20
3:46
billion from Russian assets between 2024
3:49
2027 there is still disagreement within
3:52
the European commission about how to use
3:55
these potential funds with some favoring
3:57
support for Ukraine's budget and other
3:59
is advocating for investment in the eu's
4:02
defense industry to produce weapons for
4:05
keev the Russian money that appears to
4:07
be the subject of American interest is
4:09
the dollar 50 to 60 billions currently
4:12
held in US Banks and financial
4:14
institutions the repo act an acronym for
4:17
rebuilding economic prosperity and
4:19
opportunity for ukrainians is currently
4:22
under consideration by lawmakers if
4:25
approved it would Grant the US
4:27
government the authority to confiscate
4:29
the Frozen Russian funds however there
4:32
are still many unknowns about actually
4:34
seizing that money nobody knows for sure
4:38
how much they will take the final figure
4:41
will be determined by what precise
4:43
guidelines are incorporated into
4:45
policies and laws and whether any legal
4:47
challenges arise to prevent certain
4:49
aspects of it from being implemented
4:51
furthermore there has been talk of doing
4:53
the entire asset seizure procedure as a
4:56
collaborative effort with other
4:58
countries rather than the United States
5:01
acting alone so International
5:03
cooperation may have an impact on the
5:05
amount of Russian funds they ultimately
5:07
obtain while the goal is to raise 50 to
5:10
60 billion converting those frozen
5:13
assets into cash for Ukraine is proving
5:16
to be a difficult process with numerous
5:19
obstacles the devil will be in the
5:21
specifics of policymaking and bargaining
5:24
with Partners to determine who gets what
5:26
share of Russia's pie while the idea of
5:29
seizing Russian assets to punish
5:30
moscow's aggression sounds appealing the
5:33
repo act faces significant
5:36
opposition critics raise concerns about
5:39
the legality of confiscating private
5:41
property arguing it violates
5:43
International laws and property rights
5:45
which could spur lengthy Court battles
5:48
there are also fears it sets a dangerous
5:50
precedent that other nations could
5:52
exploit by seizing foreign assets
5:54
injecting uncertainty and instability
5:57
into Global Finance some were wor that
6:00
such a provocative move could
6:01
dangerously escalate tensions with
6:03
Russia potentially leading to
6:04
unpredictable and severe
6:07
consequences doubts also linger about
6:09
the effectiveness of asset seizures as
6:11
Russia may find alternative funding
6:13
sources while the legal process
6:15
drags as an alternative opponents
6:18
suggest focusing efforts on stricter
6:20
multilateral sanctions or establishing a
6:23
mechanism to return seized funds to
6:25
Russia after the war's end contingent on
6:28
certain conditions being met the
6:30
challenging debates around the repo act
6:33
highlight the complexity of wielding
6:36
Warfare as the repo act moves through
6:38
Congress reactions have been divided
6:40
along partisan lines reflecting the
6:42
larger debate surrounding the plan
6:45
Democratic senators overwhelmingly favor
6:47
the idea seeing it as a way to condemn
6:50
Russia's aggressiveness while
6:51
immediately delivering Aid to
6:53
Ukraine Republican opposition on the
6:56
other hand has rallied around fears
6:58
about legal challeng es setting an
7:00
unfavorable precedent for asset seizures
7:03
and perhaps escalating tensions with
7:05
Moscow at this early stage determining a
7:08
precise vote count on March 13th 2024 is
7:12
uncertain the repo Act is still being
7:14
debated and revised in congressional
7:16
committees and there has been no formal
7:18
floor vote yet furthermore senator's
7:21
positions May shift as the debate
7:24
continues however some evidence points
7:26
to a level of existing support the house
7:29
already supported a non-binding
7:31
resolution supporting the president to
7:33
pursue Russian asset seizures in May
7:36
2022 public opinion polls also revealed
7:39
General support for using confiscated
7:41
Russian funds to assist Ukraine which
7:44
may convince some indecisive Senators
7:47
the breakdown of votes for and against
7:49
the contentious repo act may become
7:51
clear as the Parliamentary process
7:54
progresses now do you think us and EU
7:57
will be able to seize Russian funds
7:59
without repercussions from Market let us
8:02
know in the comments we discuss such
8:05
interesting subjects every day please
8:07
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