The Nobel laureate compared the confiscation of Russian assets to a cataclysm for the dollar

The seizure of frozen Russian assets to help Ukraine could be a cataclysm for the dollar-dominated system, says Nobel Prize laureate in economics and Yale University professor Robert Shiller. He “can’t convince himself that this is the right way.” According to the economist, the decision will confirm for Russian President Vladimir Putin that what is happening in Ukraine is a proxy war, and could “paradoxically turn around” against the United States and the West.

“What message is sent to dozens of countries that, like Russia, including, after all, the G7 countries, for the sake of security, convert their savings into dollars and entrust them to the reliable hands of Uncle Sam? If America does this to Russia today… then tomorrow it can do this to anyone,” Mr. Schiller told the Italian newspaper La Repubblica (quoted by TASS).

The expert believes that asset confiscation will “destroy the halo of security that surrounds the dollar.” This will be the first step towards de-dollarization. Now, as Mr. Shiller notes, many countries are leaning towards this step – “from China to developing countries, not to mention Russia itself.” States may be “tempted to convert” dollars into yuan “or, why not, into euros.”

In the G7 countries, the European Union and Australia, about €260 billion of assets of the Central Bank of Russia have been frozen, the Financial Times reported. Sanctions were applied after the Russian Federation sent troops to Ukraine. Western countries are discussing the possibility of using these funds to restore Ukraine. Discussions are underway in the EU regarding the transfer to Kyiv of income received from frozen Russian assets. The US wants to confiscate the assets themselves, not the proceeds from them. By information Media, Washington proposed that Western countries recognize themselves as victims of the Russian-Ukrainian conflict, seize Russian assets and transfer them to Kyiv.

Russian Finance Minister Anton Siluanov saidthat Russia will take mirror measures in case of confiscation of its assets or use of proceeds from them. The head of the department noted that Russia also has enough frozen funds. Deputy Head of the Russian Foreign Ministry Sergei Ryabkov didn’t rule it out a complete severance of US diplomatic relations in the event of confiscation of assets.

What confiscation of assets in the EU might look like – in the Kommersant material “Remove after defrosting”.

Leonid Uvarchev