The International Monetary Fund has expressed concern about the possible consequences of seizures of Russian assets abroad as a result of the ongoing military conflict between the country and Ukraine. Julie Kozak, a spokeswoman for the agency, said such actions needed strong justifications to avoid a threat to the global financial system.
International Monetary Fund calls for appropriate measures to be taken regarding confiscation of Russian assets abroad
The possibility of confiscation of Russian assets abroad has led various analysts and even international organizations such as the International Monetary Fund (IMF) to express their opinions on how this could be achieved. How will this impact the financial system, following the recent approval in the US House of Representatives of the Restoring Prosperity and Economic Opportunity (REPO) Act, which allows the US President to seize these assets? Some people have expressed concern about the possibility.
International Monetary Fund Spokesperson Julie Kozak commented on the need to ensure due process in any actions related to the seizure of these Russian assets.
The ransom bill still needs to pass the US Senate, but if passed it would affect the future of $6 billion in Russian assets in the US used for humanitarian and economic aid to Ukraine..
Analysts estimate that approval of the buyback law could lead to changes in the structure of the international economic system and strengthen existing efforts aimed at replacing the role of the US dollar as the reserve currency. It could also allow the European Union to take similar measures against Russia.
However, representatives of the Bank of Russia ignored the impact that the introduction of the repurchase law would have on the stability of the Russian economy. Bank of Russia Governor Elvira Nabiullina said this "will not have any impact" as the bank has "stopped operating frozen assets for a long time."