Frozen Russian assets to fuel Ukraine’s fight, Globalists G7 strategy revealed!

In a recent meeting held in northern Italy, the G7 finance ministers and central bank governors reached a pivotal decision to explore utilizing future income from approximately $300 billion in frozen Russian assets to support Ukraine. This plan, while gaining significant traction, still requires substantial development and endorsement from various international bodies, particularly the 27-member European Union (EU).

The G7’s Proposal: A New Financial Lifeline for Ukraine

At the conclusion of the G7 finance meeting, U.S. Treasury Secretary Janet Yellen emphasized the broad support for this innovative plan but acknowledged that considerable work remains to transform it into reality. The plan involves leveraging the frozen Russian assets, primarily held in Europe and immobilized since February 2022, to generate income that can be loaned to Ukraine. Yellen indicated that this initiative could potentially provide Ukraine with up to $50 billion upfront, a move aimed at demonstrating to Russia the substantial financial backing from the EU and the U.S.

The Challenge of EU Endorsement

Yellen pointed out that the proposal needs to be thoroughly developed and approved by the EU, a complex process involving agreement from all 27 member countries. “It needs to be fleshed out within the EU so that it can become a proposal that the EU endorses, and that’s a lot of countries,” she stated. The plan’s success hinges on obtaining this broad-based endorsement, which is not a guaranteed outcome.

The Impact on Global Financial Systems

The immobilization of Russia’s $300 billion in reserves, predominantly held as U.S. dollars, has had far-reaching implications for the global financial landscape. The act of freezing these assets has significantly undermined the role of the U.S. dollar as the world’s reserve currency. In response, central banks worldwide have reduced their U.S. dollar holdings and shifted towards purchasing gold. Gold, perceived as sanction-proof and immune to similar seizures, has become a preferred reserve asset. This shift underscores the vulnerability of countries holding reserves in U.S. dollars, which can be weaponized, unlike gold reserves.

Central Banks’ Move to Gold

Since 2022, there has been a notable trend of central banks increasing their gold reserves. This strategic move is driven by the need to safeguard national reserves from potential sanctions and asset freezes. The ability to weaponize the U.S. dollar, particularly when reserves are held in European banks, has prompted this significant shift towards gold, viewed as a more secure and reliable store of value.

Next Steps for the G7 and Global Cooperation

The G7 finance leaders are committed to putting extensive effort into refining this plan over the coming weeks. The goal is to have a sufficiently developed proposal ready for consideration by G7 leaders at the upcoming summit in Italy’s southern Puglia region in June. This timeline underscores the urgency and importance of the initiative in providing timely and substantial financial support to Ukraine. Yellen cautioned against assuming its success is a foregone conclusion. “It’s not a given, so I’m not saying this is a totally done deal,” she remarked, highlighting the intricate process of securing the necessary endorsements and refining the proposal to meet the varied requirements of all involved parties.

How $300 Billion From Russia’s Reserves Was Seized

The U.S. government, along with its allies, seized $300 billion from Russia’s reserves as part of the sanctions imposed in response to Russia’s actions in Ukraine, which followed the 2014 conflict that began after the overthrow of Ukraine’s elected government. This significant action involved freezing the assets held by Russia’s central bank in foreign accounts, predominantly in Western financial institutions. Here’s a breakdown of how this process unfolded:

1. Sanctions and Legal Framework

• Coordination with Allies: The U.S. worked closely with the European Union, the United Kingdom, Japan, and other allies to ensure a coordinated effort in imposing sanctions.
• Sanctions Implementation: Legal measures were enacted to authorize the freezing of assets. These included executive orders and legislative actions that targeted the Russian central bank and other financial institutions.

2. Identification of Assets

• Global Financial Network: Russia’s reserves were held in various forms, including currencies, bondsUnited States Treasury securities are debt instruments issued by the United States government to finance its spending. Treasury securities come in a variety of forms, including bil... More, and other financial instruments, across multiple international banks and financial institutions.
• Tracing and Tracking: Financial authorities and intelligence agencies traced the location of these reserves, utilizing advanced financial tracking systems and cooperation with global banks.

3. Freezing Mechanism

• Asset Freezing: Once identified, the reserves were effectively “frozen,” meaning Russia could not access or use these funds. This was achieved through orders sent to banks holding these assets, preventing any transactions or withdrawals.
• Legal Hold: Financial institutions were legally obligated to comply with the sanctions, placing the assets in a state of suspension.

4. Impact and Consequences

• Economic Pressure: The seizure aimed to exert significant economic pressure on Russia, limiting its ability to fund the war in Ukraine and manage its economy.
• Diplomatic and Financial Ramifications: This action strained diplomatic relations and had wide-reaching impacts on the global financial system, highlighting the leverage that Western financial networks hold.

5. Future Considerations

• Potential Uses of Seized Funds: Discussions have been ongoing about the potential use of these frozen assets, including possible allocation towards rebuilding efforts in Ukraine or other humanitarian needs.
• Long-term Legal Battles: The seizure of such a substantial amount of assets could lead to long-term legal disputes, as Russia might challenge the legality of the asset freeze in international courts.

This unprecedented move demonstrated the significant economic tools available to Western nations and their ability to coordinate sanctions on a global scale to respond to geopolitical conflicts.

The Destabilization of Ukraine in 2014 – Maidan Protests

For decades, Washington and allied governments have pursued their strategic and economic interests under the guise of promoting democracy and liberal values abroad. This has included funneling money to violent reactionaries, such as the Nicaraguan contras, as well as supporting pro-democracy movements like those in Ukraine.

External Influence in Ukraine

“External actors have always played an important role in shaping and supporting civil society in Ukraine,” Ukrainian scholar Iryna Solonenko wrote in 2015. She highlighted the contributions of the EU and the United States, through agencies like the National Endowment for Democracy (NED) and the US Agency for International Development (USAID). These organizations have been major sources of funding for Ukrainian civil society since independence, significantly influencing its development.

The Orange Revolution

During the 2004-2005 Orange Revolution, foreign NGOs did little to address Ukraine’s corruption and authoritarianism but succeeded in shifting Ukraine’s foreign policy westward. As the Center for American Progress noted, Americans did meddle in Ukraine’s internal affairs, labeling their activities as democratic assistance, democracy promotion, and civil society support.

The Maidan Protests 2014

US officials saw an opportunity in the Maidan protests, similar to the Orange Revolution. Just before the protests began, the NED’s president highlighted the potential for Washington to help. This involved funding groups like New Citizen, which played a significant role in the protests. Journalist Mark Ames discovered that this organization received substantial funding from US democracy promotion initiatives.

Direct US Involvement

Washington’s involvement became more direct once the protests started. Senators John McCain and Chris Murphy expressed their support to the protesters, and US assistant secretary of state Victoria Nuland handed out sandwiches to them. A leaked phone call later revealed Nuland and the US ambassador to Ukraine maneuvering to shape the post-Maidan government, favoring Arseniy Yatsenyuk, who later became prime minister.

While it’s an overstatement to claim that Washington orchestrated the Maidan uprising, there is no doubt that US officials supported and exploited it for their own ends.

Ukraine’s Ongoing Conflict Since Maidan

Since the Maidan uprising in 2014, Ukraine has been entangled in a mini-civil war. Following President Yanukovych’s ousting, pro-Russian separatists in eastern Ukraine mobilized, escalating from protests to armed insurgency. When the interim Ukrainian government responded with military force, Moscow intervened with its troops, turning the region into a deadly and volatile conflict zone.

The Complex Reality of the Maidan Revolution

The Maidan Revolution is a complex event that defies simple categorization, differing significantly from the narrative presented to Western audiences. It involved liberal, pro-Western protesters with legitimate grievances, primarily from one half of a polarized country, who temporarily allied with far-right groups to overthrow a corrupt, authoritarian president. Unfortunately, this alliance ended up empowering neo-Nazi factions while primarily serving the strategic interests of Western powers.

Looking Ahead

The G7’s plan to utilize frozen Russian assets represents a significant and innovative approach to supporting western Ukraine amidst its ongoing conflict with Russia. By potentially providing up to $50 billion in upfront loans, the initiative aims to bolster Ukraine’s financial resilience and demonstrate the combined financial power of the EU and the U.S. However, the plan’s success hinges on navigating the complex landscape of international endorsements and detailed development. As the G7 finance leaders continue to refine this proposal, the world watches closely, recognizing the profound implications for global financial systems and geopolitical stability.