From Dow Jones & Co.:

The ongoing war in Ukraine is taking a significant toll on the region and around the world. While the G7 countries and other governments have been generous with aid, there are concerns about potential fatigue in providing support to Ukraine. There is a proposal to seize Russian assets frozen by Western countries as a potential solution to provide more aid to Ukraine, although there are concerns about setting a precedent and the impact on international financial systems. Economists argue that the impact on other countries’ willingness to deposit funds in the U.S. or Europe would be negligible. Furthermore, seizing Russia’s frozen assets would not absolve the West of the responsibility to provide military aid to Ukraine. The estimated cost of rebuilding Ukraine is over $1 trillion, which is more than three times the value of the seized assets.

The idea of seizing Russian assets frozen by Western countries has emerged as a potential solution to boost Ukrainian morale and finances. Although there are concerns about the impact on international financial systems and the ability to use this tool more than once, economists argue that the impact on other countries’ willingness to deposit funds in the U.S. or Europe would be negligible. Furthermore, seizing Russia’s frozen assets would not absolve the West of the responsibility to provide military aid to Ukraine. The estimated cost of rebuilding Ukraine is over $1 trillion, which is more than three times the value of the seized assets. Despite the immense damage caused by the war, the frozen Russian assets can be seen as a down payment on the reparations that the Kremlin should eventually be compelled to pay.



Read more: Opinion: Seize frozen Russian assets to back Ukraine’s military and finance its recovery