Frozen Russian assets won't cover Ukraine's losses - Central bank head
Photo: Andrii Pyshnyi, the head of the National Bank of Ukraine (facebook.com/pyshnyy)
The frozen assets of the Russian Federation will not be enough to cover the losses inflicted on Ukraine by the full-scale war, stated Andrii Pyshnyi, the head of the National Bank of Ukraine (NBU).
As Pyshnyi explained, the amount of Russian frozen assets is about $300 billion.
"The exact figure is never mentioned. It always comes with a certain range: 260-280-300, depending on the country. But we can understand the overall volume. It's about $300 billion," noted the head of the NBU.
According to Pyshnyi, Ukraine considers the frozen assets of Russia as a source to cover the losses incurred and to be incurred during the war.
According to a quick estimate by the World Bank, by the end of 2023, the full-scale war had caused Ukraine losses of $500 billion. Therefore, the frozen assets will not be sufficient to cover them.
"But we anticipate that this will be a source of the necessary funds that Ukraine will need both for resistance and for compensation," Pyshnyi noted.
Frozen assets of Russia
Following the onset of full-scale war, the West froze around $300 billion of Russian assets. Currently, confiscating them has proven elusive due to legal as well as reputational risks. However, this issue continues to be raised.
In mid-April, Vice-President of the European Commission Valdis Dombrovskis suggested that frozen assets could be used as collateral for extending credits to Ukraine.
Recently signed by President Joe Biden, the law supporting Ukraine also permits his administration to confiscate frozen Russian assets for the benefit of Ukraine, totaling around $5 billion. However, as reported by the media, the United States is unlikely to do so without the consent of other G7 members and the European Union.
Meanwhile, G7 countries plan to address the issue of frozen assets at the upcoming summit scheduled for June.
