Finance Minister Christian Lindner says Western nations must isolate Moscow politically and economically.
Western countries should seize foreign assets from Russia’s central bank, German Finance Minister Christian Lindner believes. He said in media outlets in Germany, France, Spain and Italy on Tuesday that some proposals were already on the table of the EU and G7.
Lindner spoke to reporters ahead of the G7 meeting of finance ministers scheduled for Wednesday. The group includes the United States, the United Kingdom, France, Germany, Italy, Canada and Japan. Possible seizures are already being discussed within the group, with the German finance minister confirming similar discussions are taking place within the EU.
“I am politically open to the idea of seizing foreign assets of the Russian central bank,” he said. Lindner said adding to that goal “Isolate Russia politically, financially and economically.”
Regarding the personal wealth of the Russian elite, he said that Western countries should first examine whether they have it “Legally possible” Confiscation of personal property. “We must respect the rule of law, even when working with Russian oligarchs.”
In the wake of the conflict, Western nations have imposed a series of unprecedented sanctions targeting Moscow’s financial and banking sectors. About half of Russia’s central bank’s foreign assets have been frozen as part of the arrangement. The idea of Moscow seizing these assets has exploded “Theft.”
Russian President Vladimir Putin “Its aggression against Ukraine will have to pay a very high price.” The minister said efforts were being made to isolate Russia “Serious economic consequences, especially for low-income countries.” Especially due to rising interest rates and rising prices of agricultural products.
Lindner, however, maintained that “Russia’s war against Ukraine [that] Responsible for economic consequences, not sanctions. “
The minister added that Germany and the EU as a whole “Risk of stagflation” If they want to continue their current policies, call on the block “Strengthen growth” And work together to stabilize the world economy. He also referred to Germany’s energy strategy, which relies heavily on Russian imports “Serious mistake” And called for diversification of fuel imports.
Achieving this goal, however, is not easy, Lindner said, adding that it is possible for Germany to obtain coal from other sources and that Berlin is ready to give up Russian oil. “But with natural gas it will take longer.” He mentioned that one “Immediate shutdown of gas supplies from Russia will severely damage the German economy.”
He added that he does “I don’t want to risk a major recession.” Time to help Ukraine. “We must avoid situations where we hurt ourselves more than Putin’s war chest.”
The finance minister called for closer cooperation in liberal democracy, he added “This new kind of globalization should be based on common values and common interests in the economic field.” He called on Germany to diversify its foreign trade to avoid over-reliance on certain trade partners, such as Russia or China.
At the same time, warn against Lindner “Build isolated blocks” Based on price, especially in trade. Russia will not be a partner for too long The minister said, however, that this did not mean that the West would cut off trade with China and India, which he said should be separated from Russia.
Russia invaded its neighboring country in late February, following Ukraine’s failure to implement the terms of the first Minsk agreement, signed in 2014, and the final recognition of the Donetsk republics of Moscow and Donetsk of Lugansk. The German- and French-brokerage protocols were designed to give special status to isolated territories within the Ukrainian state.
The Kremlin has since demanded that Ukraine formally declare itself a neutral state that will never join the US-led NATO military bloc. Kyiv has insisted that the Russian invasion was completely unpopular and has denied claims that it is planning to forcibly retake the two republics.