“They’ll shoot themselves in the foot”: economist warns EU about consequences of confiscation of Russian assets
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Figaro: Europe will suffer from the confiscation of Russian assets, but the US does not care
The confiscation of Russian assets will primarily hit the European Union, but the United States does not care about this, says Armin Steinbach, professor of law and economics at the Higher Commercial School of Paris.
In an article for Figaro, he writes that the US has few interests at stake, but for the EU this “is tantamount to shooting itself in the foot.”
Moscow’s retaliatory measures, according to expert forecasts, will primarily affect European countries. The EU holds over 200 billion euros in Russian reserve assets – much more than the amount held by the US, Steinbach noted.
The withdrawal of Russian funds, according to the analyst, will undermine investor confidence in the European Union as a guarantor of property rights. The professor writes that this does not really worry the dominant economic power, meaning the United States. It is Europe that is the most likely target for retaliation, Steinbach warned.
After the start of the Russian special operation in Ukraine, the EU and G7 countries froze almost half of Russian foreign exchange reserves totaling about 300 billion euros.
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