NYT: US fears losing investor confidence if Russian assets are seized

WASHINGTON, June 1 – RIA Novosti. US authorities fear that a possible confiscation of the frozen assets of the Central Bank of Russia will undermine the status of States as a reliable investment partner in the eyes of other countries. author The New York Times cites sources.

According to the publication, discussions on the withdrawal of the assets of the Bank of Russia “met with resistance in the United States” because of the legal and reputational consequences that the country may face in such a scenario.

“Top officials in the Joe Biden administration have warned that withdrawing these funds may be illegal and may prevent other countries from relying more on the United States to invest,” the publication said.

The NYT notes that unlike many European countries that openly want the use of frozen Russian assets for financial aid to Ukraine, the US is “much more cautious” about it.

According to the newspaper, American officials are inclined to believe that confiscation of Russian assets could encourage other countries’ central banks to divert their assets into currencies other than the dollar.

In a recent speech, US Treasury Secretary Janet Yellen said she did not know whether the frozen assets of the Russian Central Bank could be diverted to aid Ukraine. The US authorities have repeatedly emphasized that they have not yet made a decision on this issue.

Western countries have imposed new sanctions on Moscow after the Russian army’s special operation to demilitarize and navy Ukraine. Thus, Russian reserves were frozen in the amount of about 300 billion dollars. In some countries, as part of the sanctions policy, decisions are also taken to freeze the assets and real estate of Russian businessmen. Ukrainian Foreign Minister Dmitry Kuleba has previously asked the G7 countries to pass laws that would allow them to seize Russian assets and transfer them to Kiev.

President Vladimir Putin said that the policy of controlling and weakening Russia is a long-term strategy for the West and that the sanctions have dealt a serious blow to the entire global economy. According to him, the main goal of the United States and Europe is to make the lives of millions of people worse. He added that current events draw a line under the global domination of the West, both in politics and economy. According to him, Russia will not isolate itself and cannot be rigidly isolated in the modern world.