Currently, there are several areas in which Ukraine is working to compensate for the damage caused by the armed aggression of the Russian Federation, in particular by gaining access to the funds of the aggressor country, which are blocked abroad. Oleh Ustenko, Economic Adviser to the President of Ukraine,
KYIV. UkraineGate , 25 , May , 2022 | Economy .
What funds are involved
First of all, about the numbers. All we have already lost in our assets is about $ 650 billion. If we add to this $ 650 billion the so-called indirect losses, the amount could reach about $ 1 trillion. Of course, the question arises. how all this can be compensated “, – the expert thinks.
According to him, there are several areas of compensation.
If we are talking about the Russian Federation, it is primarily about the frozen assets of their central bank. It is about $ 350 billion. They are scattered in different countries. Therefore, what needs to be done with these funds is fundamentally an understanding that these funds should be used for the reconstruction of Ukraine and should be available to Ukraine right now. How to do it? Technically, changes to national legislation are needed, “he said.
According to Ustenko, this is not difficult to do, and this is a small number of countries with Russian assets.
Yes, we need such changes to the national legislation of these states, which will allow the use of Russian funds for Ukraine immediately, says the interlocutor.
“This is not a long process that requires the courts, something else, changes to local laws will allow to do so,” – said the interlocutor.
The second track, he said, concerns funds belonging to the Russian nomenklatura, which are already under arrest.
“That’s about $ 150 billion. And that’s not the final amount, because there are now several groups tracking all these assets that have been taken out of Russia, are also stored outside of Russia, and which also need to be seized. These are the so-called hidden assets: what is currently under arrest is just what was on the surface, but there is much, much more, what is hidden, and a few working groups that are working are trying to find out where these funds are, in order to seize them in the future, “Ustenko said.
How to use the funds
As for the use of funds, he explains that a special fund will eventually be set up for these tangible assets, which have already been seized and will be seized in the future.
Quote
“A basket with such assets is formed, and then, as I understand the economic idea, after the basket is formed, you can issue special debt on the value of this basket. That is, in order not to rush to sell all this property, you just him arrested, formed this basket, it is clear how much there is and what is there, it can continue to be replenished, but at the cost of this basket you run debt borrowings that sell on the market for a long period of time. They go to the Reconstruction Fund of Ukraine immediately, and the property can be sold later, and then after you sell the property, you pay no longer to Ukraine, but to those who bought these promissory notes. “, – Ustenko notes.
He adds that this is a process that can be implemented now and quickly.
Source: Ukrgate