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War on the Rocks

The Case for Seizing $300 Billion in Russian State Assets

Jan 4, 2024
Explore the feasibility and legality of seizing $300 billion Russian state assets held in Western banks. Discuss the significance of these assets amidst the Ukraine conflict. Analyze the proposal as a countermeasure to Russia's aggression and the concerns surrounding it. Examine the application of international law and its impact on the financial system. Explore potential consequences and retaliation of seizing Russian assets.
21:13

Podcast summary created with Snipd AI

Quick takeaways

  • Seizing $300 billion of Russian state assets held in Western banks can help finance Ukraine's recovery and counter Russian aggression by compensating victims of their aggression.
  • The international law of state countermeasures allows countries to freeze and seize Russian state funds held in Western banks as compensation for Russian aggression, with the British government determining this action as legal and feasible.

Deep dives

Feasibility and legality of seizing Russian assets

Seizing Russian assets stored in Western banks has been a topic of chatter and discussion due to the ongoing conflicts with Ukraine. The center of gravity in the war is the economic viability of Ukraine, and Russia aims to wreck Ukraine's economy if they can't control it. Russia left around $300 billion in frozen assets in Western banks, which could be used to compensate victims of their aggression, primarily Ukraine. Under international law, states can take countermeasures to compensate for aggression, and this would not be a violation of normal obligations. Seizing these assets can help finance Ukraine's recovery and further its integration into the European Union, countering Russian aggression.

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