Russia warns of global impact if frozen assets are used

Russia has cautioned that utilising its frozen financial assets could lead to significant disruptions in the global financial system. 

Deputy Finance Minister Ivan Chebeskov emphasised that leveraging these assets would have "profound systemic consequences" for international monetary stability. 

He warned that the increased use of the US dollar as a tool in economic conflicts could prompt developing nations to seek alternatives for transactions and reserve holdings. 

This warning comes amid discussions by the Group of Seven (G7) nations to fund a $50 billion loan package for Ukraine using proceeds from frozen Russian assets. 

The plan aims to financially support Ukraine while deploying seized Russian funds, which have been held under sanctions. 

In response, Russian Finance Minister Anton Siluanov stated that Russia is already repurposing revenues from foreign-owned assets within its borders to counter Western sanctions. 

These measures are part of broader economic strategies as both Russia and Western nations continue to exert financial pressure linked to ongoing geopolitical tensions. 

The sanctions targeting Russia have been expansive, affecting key economic sectors and restricting the country’s access to global markets and resources. 

Western-led measures have frozen Russian assets abroad, limited financial transactions, and disconnected Russian banks from international networks such as Swift. 

Meanwhile, European diplomats are considering reinforcing sanctions against Russia amid uncertainties about future US policies. 

With the possibility of a Donald Trump presidency, EU leaders are reportedly strategising on maintaining strong sanctions, focusing on preventing suspicious exports to Russia and continuing to freeze Russian central bank assets.