President Volodymyr Zelensky has called for the $300bn in frozen Russian assets held by world banks to be used directly to rebuild Ukraine. Speaking to the BBC on the sidelines of the World Economic Forum in Davos, he argued that Western taxpayers should not bear the cost of the war.
The G7 is currently considering a plan that would only utilise the interest and increase in value of the assets since their freeze in 2020. But Zelensky insisted all of the money should be deployed. 'If the world has $300bn — why not use it?' he said.
However, central bankers in Europe have expressed concerns that such a move could undermine the safe-haven status of their currencies and financial systems. Belgium, which holds a large portion of the frozen assets due to its role in European reserve clearing, has already applied a charge raising €2bn for Ukraine.
Bill Winters, chief executive of Standard Chartered, warned of the risks of 'weaponising' central banks and currencies. 'In the long run the US dollar plays such a central role that we do have to be careful,' he told the BBC, noting that sanctions have already stretched that principle.
Zelensky also cautioned that some in the West are in denial about Russian President Vladimir Putin's territorial ambitions, and reiterated that Ukraine is defending Europe and needs more assistance.
