Former Head of the World Bank Robert Zoellick Proposes New Action Plan for Russian Assets
22 January 2024 22:12
Former Head of the World Bank Robert Zoellick
The former leader of the World Bank, Robert Zoellick, urged Western countries not to be afraid to use Russian frozen assets for the benefit of Ukraine, emphasizing the strategic advantage of such actions.
In his column for the Financial Times, he wrote that Western powers that waver on the issue exaggerate the potential risks and underestimate the strategic benefits. He believes that the concern that other nations may stop holding their assets in Western banks is unfounded.
Zoellick believes that the joint actions of the “Big Seven” countries and the European Union can exclude any alternatives for other states to keep their funds elsewhere.
“If the G7, including the EU, act together, other countries will not find worthy alternatives for investing their assets. Some may hold gold, but it is not liquid. Even China, despite encouraging the use of the yuan in its trade, does not rely on its own currency for reserves, for sound reasons. China and other economies do not hold dollars or euros because they are friendly to Europe and the US. Rather, they trade with a surplus, earning foreign currency. If Beijing were to give up its dollars or euros in favor of the yuan, it would have to decide where to invest its funds, while at the same time undermining the exchange rate of its exporters, thus harming its trade,” he stressed.
Zoellick also noted that the two-year freezing of Russian assets by the G7 countries did not have a disruptive or deterrent effect on the international market.
He described transferring Russian assets to Ukraine as “elegant justice” and moral support for the Ukrainian people at this difficult time. Zoellick also said that this would be a signal to Russia that it will not be able to hold out longer than Ukraine.
In addition, the former head of the World Bank noted that the transfer of Russian assets to Ukraine is logical, given that the West is already sending weapons to Kyiv to fight Russia.
Zoellick expressed doubt that the Western powers would return the frozen assets of Russia, except in the case of reaching a peace agreement.
He also suggested that the idea of transferring Russian assets would find support among American voters who are dissatisfied with the use of US budget funds to support Ukraine.
“Putin continues to destroy Ukraine ruthlessly. The G7 and other friends should stop wavering and instead use the obvious economic tool to help the country resist,” Robert Zoellick summarized.
Source: https://www.ft.com/content/7fc0334e-4c06-444d-9c90-01cb9e449f43
