SAO PAULO, Brazil: US Treasury Secretary Janet Yellen said Tuesday it was urgent for G7 nations to jointly seize profits from frozen Russian assets and redirect them to Ukraine, as the group prepared to meet on the issue.
Calls have been mounting in the United States and Europe to set up a fund for Ukraine using billions of dollars in bank accounts, investments and other assets frozen by the West over Russia’s 2022 invasion.
“It is necessary and urgent for our coalition to find a way to unlock the value of these immobilized assets to support Ukraine’s continued resistance and long-term reconstruction,” Yellen told journalists in Sao Paulo, Brazil, where she will attend a meeting of G20 finance ministers Wednesday and Thursday.
“There is a strong international-law, economic and moral case for moving forward. This would be a decisive response to Russia’s unprecedented threat to global stability. It would make clear that Russia cannot win by prolonging the war and would incentivize it to come to the table to negotiate a just peace with Ukraine.”
Yellen urged joint action by the Group of Seven — Canada, France, Germany, Italy, Japan, Britain and the United States, plus the European Union — after evaluating the risks, which include triggering financial instability.
“The G7 should work together to explore a number of approaches: seizing the assets themselves, using them as collateral to borrow from global markets,” she said.
G7 officials say the group is due to meet on the sidelines of the Sao Paulo gathering to discuss support for Ukraine, as its grueling fight against Russia enters its third year.
Ukraine has warned it desperately needs more military and financial assistance, as a fresh $60 billion US package remains stalled in Congress.
That has cast a spotlight on the estimated $397 billion in Russian assets frozen by the West, ranging from central bank assets to yachts, real estate and other property from oligarchs close to President Vladimir Putin.
But there are risks involved, including likely Russian legal action and the potential for scaring other countries, such as China, into reducing their own investments in the West, fearing similar action.
Yellen said a risk to financial stability would arise “if there were a massive shift away from currencies” of Western countries in response to seizing Russian funds. But she said the risk was minimal if the G7 acted together.
“I think (financial instability) is extremely unlikely, especially given the uniqueness of this situation, where Russia is brazenly violating international norms and a group of countries representing half the global economy... have the capacity to work together,” she said.
“Realistically, there are not alternatives” to the dollar, euro and other G7 currencies on international markets, she said.
“There are risks,” she acknowledged. “We’re working to evaluate and outline options for consideration.”
The US Congress is currently weighing a bill that would authorize the confiscation and disposition of Russian sovereign assets.
British Prime Minister Rishi Sunak called Sunday for “bolder” action on the issue, writing in an opinion piece in the Sunday Times that the West should start by taking interest from Russian assets before finding “lawful ways to seize the assets themselves.”
And Greece’s special envoy on Ukraine, Spiros Lampridis, told AFP Monday the EU is close to seizing Russian profits, saying it was “a question of months.”
However, he added that the estimated 50 billion to 60 billion euros the move would yield was a “trifle” compared with the roughly 500 billion euros or more needed for Ukraine’s reconstruction.
‘Urgent’ for G7 to seize Russian profits for Ukraine: Yellen
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‘Urgent’ for G7 to seize Russian profits for Ukraine: Yellen
- Calls have been mounting in the United States and Europe to set up a fund for Ukraine
- Yellen told journalists in Sao Paulo: “There is a strong international-law, economic and moral case for moving forward”
Blinken in Ukraine on unannounced visit to show US support
- Blinken arrived by overnight train from Poland and was due to meet with Ukrainian President Volodymyr Zelensky
Marking his fourth visit to Kyiv since the start of the Russian invasion in February 2022, Blinken arrived by overnight train from Poland and was due to meet with Ukrainian President Volodymyr Zelensky, according to an AFP journalist accompanying him.
The visit comes just weeks after the US Congress finally approved a $61 billion package of financial aid for Ukraine after months of political wrangling, unlocking much-needed arms for the country’s stretched troops.
The aid is expected to flow at an accelerated pace as Washington seeks to make up for lost months while Congress struggled to agree on assistance.
“First this trip is to send a strong signal of reassurance to the Ukrainians who are obviously in a very difficult moment both with grinding battle on the Eastern Front but also with the Russians now expanding some cross-border attacks into Kharkiv,” a senior US official who spoke on condition of anonymity told reporters aboard the train.
The secretary intends in particular to detail how US aid will “be executed in a fashion to help shore up their defenses and enable them to increasingly take back the initiative on the battlefield.”
The last visit by a senior US official was in March, when National Security Adviser Jake Sullivan went to Ukraine.
Russia is “clearly throwing everything they have in the east and expanding the fighting to Kharkiv is representative of that strategy,” the official said.
“But we have a lot of confidence that the Ukrainians will increasingly be effective in pushing the Russians back as our assistance flows in both from the United States and other allies and partners.”
In addition to holding talks with Zelensky, Blinken is expected to meet with his counterpart Dmytro Kuleba as well as members of the civil society and additionally deliver a speech focused on “Ukraine’s strategic success.”
Also up for discussion is a bilateral defense agreement that the United States hopes to conclude before the NATO summit in Washington in July.
“The negotiations are in their final stages, we’re very close,” the US official said.
Biden signs ban on imports of Russian nuclear reactor fuel into law
- Russia is the world’s top supplier of enriched uranium, and about 24 percent of the enriched uranium used by US nuclear power plants come from the country
WASHINGTON: President Joe Biden signed a ban on Russian enriched uranium into law on Monday, the White House said, in the latest effort by Washington to disrupt President Vladimir Putin’s invasion of Ukraine.
The ban on imports of the fuel for nuclear power plants begins in about 90 days, although it allows the Department of Energy to issue waivers in case of supply concerns.
Russia is the world’s top supplier of enriched uranium, and about 24 percent of the enriched uranium used by US nuclear power plants come from the country.
The law also unlocks about $2.7 billion in funding in previous legislation to build out the US uranium fuel industry.
“Today, President Biden signed into law a historic series of actions that will strengthen our nation’s energy and economic security by reducing, and ultimately eliminating, our reliance on Russia for civilian nuclear power,” Jake Sullivan, the national security adviser, said in a statement.
Sullivan said the law “delivers on multilateral goals we have set with our allies and partners,” including a pledge last December with Canada, France, Japan and the United Kingdom to collectively invest $4.2 billion to expand enrichment and conversion capacity of uranium.
The waivers, if implemented by the Energy Department, allow all the Russian uranium imports the US normally imports through 2027.
Police aim to break up pro-Palestine protests in Amsterdam
- The Eindhoven University of Technology confirmed that there were “dozens of students peacefully protesting outside next to ten to 15 tents”
AMSTERDAM: Police moved in to end a pro-Palestinian protest at the University of Amsterdam on Monday after protesters occupied university buildings in various Dutch cities to condemn Israel’s war in Gaza, ANP news agency reported.
Earlier on Monday, a Dutch protest group said it had occupied university buildings in the Dutch cities of Amsterdam, Groningen and Eindhoven.
In a post on social media site X, Amsterdam police said the university had filed a police report against the protesters for acts of vandalism.
Police made sure no one entered the university buildings and asked protesters to leave the premises voluntarily.
A spokesperson for the University of Amsterdam confirmed the occupation and said it had advised people not affiliated with the protest to leave the building.
The Eindhoven University of Technology confirmed that there were “dozens of students peacefully protesting outside next to ten to 15 tents.”
Students in the Netherlands have been protesting against Israel’s war in Gaza since last Monday and Dutch riot police had previously clashed with protesters at the University of Amsterdam.
Students in the US and Europe have also been holding mostly peaceful demonstrations calling for an immediate permanent ceasefire and for schools to cut financial ties with companies they say are profiting from the oppression of Palestinians.
Ukraine’s first lady and foreign minister visit Russia-friendly Serbia
- Although Serbia has condemned the Russian aggression on Ukraine, it has refused to join international sanctions against Moscow
BELGRADE, Serbia: Ukrainian Foreign Minister Dmytro Kuleba made a surprise visit to Russia-friendly Serbia on Monday, together with Ukraine’s first lady, Olena Zelenska, in a sign of warming relations between the two states.
On his first visit to Serbia since the start of the Russian aggression on Ukraine in 2022, Kuleba met Serbian President Aleksandar Vucic and new Serbian Prime Minister Milos Vucevic, whose government includes several pro-Russian ministers, including two who have been under US sanctions.
A statement issued by the prime minister’s office after the talks said that “Serbia is committed to respecting international law and the territorial integrity of every member state of the United Nations, including Ukraine.”
Although Serbia has condemned the Russian aggression on Ukraine, it has refused to join international sanctions against Moscow and has instead maintained warm and friendly relations with its traditional Slavic ally.
Serbia has proclaimed neutrality regarding the war in Ukraine, and its authorities repeat that Serbia does not supply weapons to any parties. However, there are reports that Serbia has delivered weapons to Ukraine through intermediary countries. The visit by Kuleba and Zelenska, who toured the Serbian capital with Serbian first lady Tamara Vucic on Sunday, was met with criticism in Moscow. Comments by readers in the Russian state-run media such as “shameful” were published by RIA Novosti.
In what appears to be damage control, soon after his talks with Kuleba on Monday, Vucevic was to meet the Russian ambassador to Belgrade and the two were to tour a big storage facility for Russian gas that is being imported to Serbia.
Pro-Russian President Vucic has informally met Ukrainian President Volodymyr Zelenskyy three times on the sidelines of international conferences. Serbia has supplied Ukraine with humanitarian and financial aid.
Vucic has for years claimed to follow a “neutral” policy, balancing ties among Moscow, Beijing, Brussels and Washington. Although he has repeatedly said that Serbia is firm on its proclaimed goal of seeking European Union membership, under his authoritarian rule the Balkan country appears to be shifting closer to Russia and especially China.
During a high-stakes visit by Chinese President Xi Jinping to Belgrade last week, China and Serbia signed an agreement to build “ironclad” relations and a “shared joint future.”
Modi’s BJP skips Kashmir as Indian election enters fourth phase
- Millions of Indians across 96 constituencies began voting on Monday
- Ruling party is not fighting elections in Kashmir for first time in 30 years
NEW DELHI: India’s ruling Bharatiya Janata Party is not contesting elections in the Muslim-majority region of Kashmir for the first time in nearly three decades, as voting in the latest round of the national polls got underway on Monday.
The world’s most populous country began voting on April 19 in a seven-phase election that is scheduled to take place over six weeks, with ballots set to be counted on June 4.
India has 968 million people eligible to vote in the general election, where incumbent Prime Minister Narendra Modi and his Hindu nationalist BJP are aiming for a rare third consecutive term in power.
Monday’s voting involved 96 constituencies in the fourth round of polling.
While the BJP, which has been in power since 2014, and its allies are contesting every other part of India as they look to secure a majority of the 543 parliamentary seats, the party is sitting out in the northern Himalayan territory of Jammu and Kashmir.
This year marks the region’s first election since Modi’s government stripped the valley of its special autonomous status and statehood — which was granted by the Indian Constitution — on Aug. 5, 2019. The move unilaterally revoked the relevant provisions under Article 370, scrapping Kashmir’s flag, legislature, protections on land ownership and fundamental rights, sparking fears of demographic engineering in the region.
“It’s really surprising that the BJP, which claimed to have over 800,000 cadres in the valley, failed to find a single candidate. It shows that the BJP is not popular in the valley,” Sanjay Tickoo, the Srinagar-based leader of the Hindu minority group Kashmiri Pandit, told Arab News.
“I am expecting a record turnout to show the central government what (they) have done to the people of Jammu and Kashmir. This is the reflection of anger … no one is happy in the valley after the abrogation of Article 370.”
Indian-controlled Jammu and Kashmir is part of the larger Kashmiri territory, which has been the subject of international dispute since the 1947 partition of the Indian subcontinent into Hindu-majority India and Muslim-majority Pakistan. Both countries claim Kashmir in full and rule in part.
Modi said his government had been focusing on jobs and development as part of an effort to end violence in the valley, which has for decades witnessed outbreaks of separatist insurgencies to resist control from the government in New Delhi.
But after the BJP lost Kashmir’s three seats in the 2019 election, the party’s popularity slid further after it revoked the region’s autonomous status later the same year and subsequently imposed months of strict communication blockade and jailed hundreds of political leaders.
“The vote expresses not only anger but also apprehension against the anti-Muslim rants that have been going on as well as whatever they have done in Kashmir,” Professor Sheikh Showkat, a Srinagar-based political analyst, told Arab News.
Altaf Thakur, BJP spokesperson in Kashmir, said the party was still taking part in the Kashmir polls by supporting other regional parties.
“It is not correct to say that we are not fighting the election, we are playing the role of kingmaker and whichever way the cadres of the BJP will go, we will win,” he told Arab News.
“It’s not important whether we stand in the elections or not, the important thing is that we have to defeat the dynasty rulers,” he said, referring to the main contenders in the Kashmir polls, the National Conference and People’s Democratic Party.
While they are fighting each other in the valley, both parties have said they oppose the BJP and are part of the Congress party-led opposition alliance, known as India.
For some Kashmiri voters, Monday’s vote was about speaking up for themselves.
“The BJP knew that they cannot tolerate the wrath of the people of Kashmir. They fled the contest without a fight,” Aijaz Ahmed, a businessman from Srinagar, told Arab News.
“I voted today because it gave me an opportunity to express myself and tell the government in Delhi that you cannot keep us silenced. We want an atmosphere without fear and a region where our own identity is not questioned.”
