G7 Taps $50B in Russian Assets—Critics Warn of Risks to Western Markets

The G7 recently approved a $50 billion loan, backed by immobilized Russian assets, to fund Ukraine’s budget, military support, and reconstruction needs.

This funding approach, with the U.S. contributing $20 billion, aims to provide aid without directly impacting taxpayers. However, experts have voiced concerns about the legality and global repercussions of utilizing seized assets this way.

Macroeconomics professor Sergio Rossi warns that such moves could damage the trustworthiness of Western financial systems, potentially affecting their reputation in managing foreign assets. Russian Deputy Finance Minister Ivan Chebeskov and President Putin criticized this as a destabilizing act, hinting at potential retaliation.

Clever Robot News Desk 29th October 2024