Just as Yogi government breaks the backs of mafias, the union of western countries is adopting the same formula against Russia. - Newztezz Online

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Thursday, May 9, 2024

Just as Yogi government breaks the backs of mafias, the union of western countries is adopting the same formula against Russia.

In the wake of Russia's invasion of Ukraine in 2022, EU countries have frozen assets worth hundreds of billions of euros. Now, due to the unexpected gains from those seized Russian assets, it has been agreed to supply weapons to Kiev. The decision may be approved in the meeting of EU finance ministers next Tuesday.

In the last 6 years, the way the Yogi government of Uttar Pradesh has taken swift action to break the back of hardened criminals and mafias, the same formula is now being adopted by the unions of western countries. In fact, in view of Russia's invasion of Ukraine in 2022, EU countries had seized assets worth hundreds of billions of euros. Now, with the unexpected gains from those seized Russian assets, it has been agreed to supply arms to Ukraine.

EU clearinghouse Euroclear has revealed it earned €1.6 billion ($1.7 billion) in interest from frozen Russian assets in just three months of this year. However, Valerie Urbain, CEO of clearinghouse Euroclear, has warned that it will have a serious impact on global financial markets. If the decision is approved at a meeting of EU finance ministers next week, the interest – up to €3 billion per year – will be used to buy arms for Ukraine.

Opposition to sharing Russia's wealth

Euroclear is the world's largest cross border settlement provider with assets of approximately €37 trillion. Euroclear has long opposed Brussels' plan to tap seized Russian funds. Its shareholders also have support. They believe that the income associated with Russian activity should be retained and not distributed. This will send the wrong message to customers that the law is no longer respected and their assets could be seized.

Russia had warned

Russian President Putin warned the West that he has a list of American, European and other assets that would be seized if his assets were seized. Russia had said in a warning tone that any action taken against its properties would amount to theft and a violation of international law.

The cash had not yet been used

The loss of profits has been a topic of discussion among EU officials and heads of state since the beginning of the war. However, the cash was not used yet because EU members objected to the 25% tax imposed under Belgian law. Belgium has now agreed to waive taxes.

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