Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Let's recap G7 mobilized "debt-raising"
A legal framework should be developed
Eurozone governments rush to sell bonds
collateral for a bond issued by a special-purpose vehicle

Now, this.
reuters | Biden, France's Macron reach agreement on using Russian assets for Ukraine, 10 June Macron set theory

U.S. President Joe Biden said on Sunday he had reached an agreement with French President Emmanuel Macron on the use of profits from frozen Russian assets to help Ukraine.
The Group of Seven nations and the European Union [enTitY] are considering how to use profits generated by Russian assets immobilized in the West to provide Ukraine with a large up-front loan [for UKRAINE] now and secure Kyiv's financing for 2025.
< wipes tears >
The funds [sic] generate 2.5 billion to 3.5 billion euros a year in profit, which the EU says is < wipes tears > not contractually owed to Russia
archive eur-lex.europa.eu: "they do not constitute sovereign assets. Therefore, the rules protecting sovereign assets are not applicable to these revenues." (21.05.24)
and therefore represents a windfall [sic]. The idea, championed by the U.S., is to use this [orphan] profit as a steady ["guaranteed"] revenue stream to service [pay principal and interest owed] a large loan of $50 billion [for UKRAINE] that could not be [ADVANTAGE UKRAINE rings a bell]
raised on the market.
by Cat on Mon Jun 10th, 2024 at 01:37:46 PM EST
[ Parent ]
bloomberg | France's Bond Yield Reaches Highest This Year on Snap Election, 10 June
French government bonds sold off sharply on Monday amid mounting concerns over the nation's finances after President Emmanuel Macron called a snap election. and Biden agreed to embezzle RUSSIAN assets.
The vote is sharpening the growing focus on the country's < wipes tears > fiscal challenges, which culminated with a credit downgrade by S&P Global Ratings last month. France's bonds, long considered one of the safest in the euro area, have been falling out of favor as the fiscal picture worsens, with the extra yield on 10-year bonds over German securities doubling from pre-Covid levels.
by Cat on Mon Jun 10th, 2024 at 02:10:10 PM EST
[ Parent ]
ChatGPT | EU looks at using its own budget as guarantee for huge loan to Ukraine, 4 June
"The attractiveness of this option for the EU may critically depend on the nature of the assurances that the United States is seeking, other G7+ contributions, the < wipes tears > governance of the loan, and the spending as well as how the financial risk is shared," the document says.

Tricky negotiations lie ahead

The plan to secure a loan unilaterally won't be without its complications for the EU however.
In a strategic win earlier this year, Hungary secured a guarantee that the decision to keep the Russian funds frozen would be renewed unanimously by the EU's 27 countries every six months. This allows Budapest to potentially turn off the taps for Ukraine at any time. The Commission's document suggests finding a way to work around this requirement in order to give more < wipes tears > predictability to the loan.

by Cat on Tue Jun 11th, 2024 at 05:29:15 AM EST
[ Parent ]
Ukraine pushes forward with war compensation mechanism, despite lack of funding
The estimated price tag for the damage caused to Ukraine by Russia's full-scale invasion is $1 trillion.
Funding [sic] for such mechanisms has historically been tricky.
How the US pay war reparations to Viet Nam
How Japan and France evaded war reparations to Viet Nam
How Monsanto paid for loss and damages in Viet Nam
What if Euroclear offered Russia a checking account with a free toaster?
Last month, however, Ukraine won a small victory. Brussels announced it would hand over the profits from those frozen assets—the interest earned on money in a bank account, for example—to a special fund for Ukraine. The estimated 3 billion euros ($3.2 billion) per year will reimburse EU member states for weapons and ammunition they send to Ukraine, but might in the future help Ukrainians rebuild their homes and lives.
by Cat on Tue Jun 18th, 2024 at 09:43:54 PM EST
[ Parent ]
ASEAN (1967 FTA): BN, ID, KH, LA, MM, MY, PH, SG, TL, TH, VN
EAS (2005 East Asia Summit): CN, RU, IN, KR, ASEAN; US, AU, JP, NZ

bloomberg | Viet Nam Greets Putin in Boost to Ties, Ignoring US Criticism, 20 June
"The visit demonstrates that Viet Nam actively implements its foreign policy with the spirit of independence, self-reliance, diversification, multilateralism," according to a statement on Viet Nam's government website.

Viet Nam and Russia have TIES going back decades to the Soviet Union.

fmprc | Xi Jinping to Pay a State Visit to Viet Nam (12.07.23)

fmprc | Wang Yi Meets with a Delegation of the Communist Party of Viet Nam (22.03.24)

Putin said nearly 60% of trade transactions between the two countries were in rubles [RUB] and Vietnamese dong [VND]. Russia relies on alternative payment settlement systems since its banks are cut off from the international payments system SWIFT.

The Russian president is expected to participate in a wreath-laying ceremony at the Ho Chi Minh Mausoleum and meet officials including Communist Party chief Nguyen Phu Trong, Chinh and President To Lam, according to Viet Nam's Ministry of Foreign Affairs.

archive US defeat by Viet Nam, financing the Viet Nam caper, NEW! Green Zone embassy garrison, Lula and Võ Văn Thưởng, Biden's high-stakes Asia sojourn, a return to normalcy and end of Viet Nam, A/RES/ES-10/21, 27 Oct 2023
by Cat on Thu Jun 20th, 2024 at 03:30:28 PM EST
[ Parent ]
state.gov | Press Briefing - June 20, 2024
QUESTION: On this, you talk about the UN Charter and the territory—sovereignty and territorial integrity. What's the U.S. record on that with regard to Viet Nam?
MILLER: So obviously we have—were involved in a conflict in Viet Nam many years ago, ancient history, and we are glad to see the—
QUESTION: It's not so ancient. I mean, I was alive during it.
MILLER: We—we are—yeah—
QUESTION: I don't know, maybe not others were, but I&mash;but it's not ancient. It's not ancient history, and—
MILLER: I wasn't trying to insult you, Matt, just to be clear. That said, we have&mDash;
QUESTION: But look, I mean, in the early 1960s, the U.S. actually went into Viet Nam and stayed there until 1975, so—
MILLER: I am full aware of the long historical record between our two countries, and in the years since you have seen a broad reconciliation between our countries and between our two peoples.
QUESTION: Okay, but when you say that you want the Russians to respect the UN Charter as it relates to Viet Nam and—
MILLER: I was speaking as it respects to Ukraine—with respect to Ukraine.
QUESTION: Well, anywhere.
QUESTION: As it relates to Viet Nam, you don't exactly have the best record, right?
MILLER: So as usual, I'm not going to litigate the full history of American foreign policy.
QUESTION: You don't have to litigate it.
by Cat on Sat Jun 22nd, 2024 at 02:45:23 PM EST
[ Parent ]


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