Global money game: How frozen Russian cash could save Ukraine's defense plans
Western nations hold about $300-billion of frozen Russian money since early-2022. With US support becoming shaky new ideas emerge to use these funds for Ukraineʼs defense needs despite international risks
The future of Ukraines defense funding faces big changes as Donald Trump shows strong dislike for more aid packages. Right now Ukraine needs lots of cash - about fifty-four billion bucks for defense in 2025 (thats one-fourth of its whole economy)
Western countries got their hands on three-hundred billion in Russian money back in 22; most of its just sitting there frozen. The US and Canada want to give this cash to Ukraine but Europe (which has most of it) isnt sure about that. Joe Biden could start things off by taking the four-to-five billion thats in US banks
The US got permission to do this stuff last spring with their new law but Bidens team wants Europe to do it first. Europeʼs kinda scared though - they think Saudi-Arabia might dump their euro bonds if they touch Russian money. The G-7 already said they wont give this money back to Russia unless they leave Ukraine and pay for damages; so why not just take it
- Belgium has one-hundred-eighty billion
- US holds around five billion
- Canada got some too
- UK is thinking about it
Stealing Russian assets will have consequences
The whole thing got more complex when Kim Jong Un sent over ten-thousand soldiers to help Russia - theyʼre getting oil and missiles for it. Russiaʼs spending big on war stuff too: theyʼll use almost half their money for defense in 25
Europeʼs got its own problems: Germans cant decide anything till Feb-25‚ and Hungary keeps blocking new rules. But hereʼs the thing - if US takes first step others might follow. Timeʼs running out though with reconstruction costs near five-hundred billion for next ten years
The money-freeze already works: last fall G-7 used interest from frozen assets to help Ukraine. But its not enough for long-term defense needs. With Russia getting help from other countries and making nuclear threats somebody needs to make a move