The Russian Foreign Ministry has strongly denounced a decision by the United States Treasury to issue a $20 billion loan to Ukraine, backed by proceeds from frozen Russian sovereign assets. The ministry’s statement, released on December 11, described the move as “common robbery” and accused the G7 nations of orchestrating an unlawful seizure of Russian property.
The U.S. Treasury announced on December 10 that the loan would support Ukraine’s economic stability amid ongoing conflict. The funds are reportedly to be repaid using proceeds from Russian assets immobilized under Western sanctions following Russia’s actions in Ukraine. However, Moscow framed this action as theft, claiming it violated international norms and further strained global financial stability.
Strong Words from Moscow
In a sharply worded statement, the ministry equated the action to organized crime, stating, “The criminal legislation of any country that claims to be civilized defines robbery as the unlawful seizure of personal property by an organized group of persons by prior agreement. In plain English, the G7 has stolen Russian money.”
The ministry warned that this step would not significantly benefit Ukraine or assist G7 countries in addressing their own economic challenges. It singled out Canada and other Western nations, suggesting that the move was an attempt to “patch holes” in their budgets.
Impact on Global Financial Systems
Russia also asserted that the decision undermines the U.S.-controlled global financial order, particularly the role of the dollar as a reserve currency. The statement characterized the Biden administration as prioritizing anti-Russian sanctions over financial stability and accused it of creating financial bubbles and exacerbating living standard declines in the United States.
The ministry tied these policies to the Democratic Party’s defeat in the November elections and speculated that the Biden administration was acting hastily before transferring power to the incoming Republican administration on January 20, 2025.
A Warning of Repercussions
The Russian government vowed to respond with measures of its own, suggesting that it could confiscate Western assets within its jurisdiction to support domestic development projects. “Russia has the possibilities and instruments to reciprocate, confiscating Western assets within its jurisdiction and using them to build up its industrial potential and implement infrastructure projects in Russian regions,” the statement read.
The Foreign Ministry further warned that the decision to use frozen Russian assets could destabilize the global “rules-based order” championed by the West, ultimately backfiring on the U.S. and its allies.
Background
The decision to issue the $20 billion loan comes amidst ongoing conflict between Russia and Ukraine, with Western nations supporting Kyiv through financial aid and sanctions against Moscow. The freezing of Russian sovereign assets has been a contentious issue, with Russia repeatedly condemning such measures as illegal and retaliatory.
The U.S. and its allies argue that sanctions and asset freezes are necessary to hold Russia accountable for its actions in Ukraine. However, the Russian response signals that tensions over economic measures remain high and could escalate further in the coming months.
As geopolitical tensions continue to mount, the global financial and political landscape faces increasing uncertainty.