Germany comments on idea of seizing Russian govt assets — Analysis
Christian Lindner, the Finance Minister of Western Nations, stated that Moscow must be isolated economically and politically by all nations.
Christian Lindner from Germany’s Finance Ministry believes the Russian Central Bank should be seized by Western countries. According to him, there are several proposals in the EU, G7 and other international organizations, according to media reports from France, Spain and Italy.
Lindner spoke with journalists before the G7 meeting for finance ministers, which is scheduled for Wednesday. It includes Japan, the United Kingdom, France, Germany and Italy. According to the German finance minister, potential confiscation is being considered within the group. He also confirmed that similar discussions were being held within EU.
“I am politically open to the idea of confiscating foreign assets of the Central Bank of Russia,”Lindner stated that Lindner added that the ultimate goal was to “isolate Russia politically, financially and economically.”
Concerning the Russian elites’ private wealth, he stated that Western nations need to first verify if this is true. “legally possible”To seize private property. “We must respect the rule of law, even when dealing with Russian oligarchs.”
In response to the conflict, several unprecedented Western sanctions were imposed on Moscow. They targeted its banking and financial sectors. Roughly half of the Russian Central Bank’s foreign assets have been frozen as part of these measures. Moscow denounced the idea of confiscating such assets. “theft.”
Russian President Vladimir Putin “has to pay a very high price for his aggression against Ukraine,”Minister said that Russia has been trying to isolate itself is a failure. “serious economic consequences, especially for low-income countries,”Particularly because of rising interest rates, and the soaring price for agricultural products.
Lindner however maintains it to be “Russia’s war against Ukraine [that] is responsible for the economic consequences, not the sanctions.”
Minister also said that Germany was part of the EU in its entirety “must face the risk of stagflation”Calling on the bloc for support if they intend to keep their current policy “strengthen growth”work with one another to stabilize the global economic system. He also called Germany’s energy strategy, which has relied heavily on Russian imports, a “serious mistake,”Hence, he called for diversification in energy imports.
Lindner acknowledged that this isn’t an easy goal to attain. She said that Germany could get coal from other sources. Berlin was also ready to abandon Russian oil. “But with natural gas it will take longer.”He observed that “immediate halt to gas supplies from Russia would severely damage the German economy.”
He stated that he also does “not want to risk a major economic downturn”You can also help Ukraine. “We must avoid a situation in which we harm ourselves more than Putin’s war chest.”
The finance minister called for closer collaboration between liberal democracies. “this new kind of globalization should be based on common values and common interests in the economic sphere.”He urged Germany not to be dependent solely on China and Russia for foreign trade.
Lindner, however, warned against “building to separate blocs”Particularly in trade, values are the basis of all decisions. “Russia will not be a partner for a very long time,”The minister stated that it does not mean the West should stop trading with China or India. He believes they should be separate from Russia.
Russia attacked its neighboring state in late February, following Ukraine’s failure to implement the terms of the Minsk agreements, first signed in 2014, and Moscow’s eventual recognition of the Donbass republics of Donetsk and Lugansk. French and German protocols were created to provide special status for the Ukrainian states that had separated from the state.
In recent years, the Kremlin demands that Ukraine declares itself neutral in order to be able to join NATO. Kiev maintains that Russia’s offensive was not provoked and denies claims that it planned to seize the two republics.