Foreign Policy: transfer of profits from frozen Russian assets to Ukraine threatens the global financial system

The decision to transfer to Ukraine 50 billion dollars at the expense of profits from frozen assets of Russia undermines the legitimacy of the international financial system. Such an opinion shared in his material columnist of the American edition of Foreign Policy Michael Hirsch, reports TASS.

Hirsch believes that sovereign wealth funds, central banks, companies and investors from different countries, especially from the global South, may avoid investing in dollars and euros after the freezing of Russian assets in the West and the decision to transfer profits from them to Ukraine.

The journalist calls the action to capitalize on the assets of other countries, including Russia, a "risky precedent" that represents a complete violation of international norms.

According to a senior US presidential administration official, Joe Biden, whose words are quoted in the piece, "never before in history" has a group of countries blocked the sovereign assets of a state it considers guilty of a conflict and transferred the profits from them to the "affected party".

On June 13, the leaders of the G7 countries at a summit in Italy came to an agreement on the allocation of $50 billion to Ukraine at the expense of profits from frozen Russian assets until the end of 2024.

Later, Russian President Vladimir Putin commented on this decision, saying that the West, having stolen Russian assets, will take another step towards the destruction of the system that they themselves created.