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ft | The clash over whether to commandeer Russia's frozen assets, 3 May
At the recent gathering of G20 finance ministers in Brazil, [some] delegates were gripped by a deep sense of unease over a pressing issue: the potential seizure or [embezzlement] of Russian [property] frozen [sic] under the [G7] sanctions that followed its invasion of Ukraine.
G20 (1999 NGO): CA, EU (EU-CO, EU-EC), FR, DE, IT, JP, UK, US, KR, AR, AU, BR, CN, IN, ID, MX, RU, SA, TR, ZA
Two ministers—Saudi Arabia's Mohammed al-Jadaan and Indonesia's Sri Mulyani Indrawati—were among those particularly alarmed by the idea. Were G7 countries seriously preparing to do this? And had they considered the full implications of such a drastic step?

Their questions to their western counterparts cut to the heart of a fraught debate over whether hundreds of billions of euros in frozen Russian central bank assets should be mobilised ["commandeer"ed] to help fund Ukraine as the conflict there drags into a third year.
[...]

archive UNLOCK THE VALUE of Russian sovereign assets frozen
"We immobilised the assets together; we would like to mobilise them together as well," says Daleep Singh, White House deputy national security adviser for international economics.
[...]
Further afield, the worry is about the [risk] this would set. Countries such as Indonesia and Saudi Arabia have been lobbying EU capitals not to seize the assets, according to officials, fearing for the future of their own reserves held ["immobilised"] within the west. "They are very worried," says one European official, adding that their main concern is: "Is our money still safe there?"
[...]
contradictions in terms
"It is morally and politically absolutely sound, but legally it is not sound," says Armin Steinbach, professor of law and economics at HEC Paris business school.
[...]
risk
The problem with that plan, for Europe, is what happens if the war ends in the near future [!]. The debt present value raised against the expectation of decades' worth of profits of future cash flow would need to be backed by state guarantees does not discount future capital costs assumed by Ukraine's creditors or by the Russian assets themselves—something that could be "complicated and costly", says one EU official.
[...]
reference
Present Value (PV)
Net Present Value (NPV)
Internal Rate of Return (IRR)
by Cat on Fri May 3rd, 2024 at 03:21:34 PM EST
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