Sanctions here to stay: Moscow doubts their lifting and recovery of frozen assets
Photo: Sanctions are for a long time (Getty Images)
Western sanctions imposed on Russia due to its military actions against Ukraine will not be lifted in the near future, and frozen assets have not been returned, Andrei Kostin, the CEO of Russia's second-largest lender, VTB, told Reuters in an interview.
"I don't really believe that the sanctions will be lifted quickly. I don't see how that is possible. A good example is the Jackson-Vanik amendment. It was enacted against the USSR, and it was only repealed in 2012," Kostin said.
Kostin referred to a law passed during the Cold War linking trade relations with the Soviet Union to the rights of religious minorities to emigrate.
The CEO of Russia's second-largest lender also expressed his belief that Russian foreign currency reserves frozen in the West after the war in Ukraine began will not be returned.
"In the West, they say, let's pay for the reconstruction of Ukraine from the reserves. And they will draw up such a bill that even the reserves will not be enough," Kostin predicted.
Russian assets
In June, G7 leaders agreed to provide Kyiv with a $50 billion loan, partially funded by interest earned from Russian assets confiscated after the full-scale invasion of Ukraine in February 2022.
António Costa, President of the European Council, stated that starting January 2025, Ukraine will receive €1.5 billion monthly financial assistance from the European Union. These funds, derived from the use of frozen Russian assets, "can also be used for military purposes."
On November 21, the United States expanded its sanctions list against Russia. According to Andriy Pyshnyy, Governor of the National Bank of Ukraine, almost all of the top 100 Russian financial institutions by asset size are now excluded from the global financial system.
