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Transcript/Script((PLAYBOOK SLUG: Europe Russia Frozen Assets (TV)
HEADLINE: Europe to fund Ukraine weapons with profits from frozen Russian assets
TEASER: U.S., Canada and Britain want EU to go further and fully seize Russian central bank assets
PUBLISHED AT: 05/09/2024 at 8:30am
BYLINE: Henry Ridgwell
CONTRIBUTOR:
DATELINE: LONDON
VIDEOGRAPHER: Henry Ridgwell, Agencies, Courtesy
VIDEO EDITOR:
SCRIPT EDITORS: LR, Steve Hirsch
VIDEO SOURCE (S): Zoom, APTN, Reuters, AFP, EU
PLATFORMS (mark with X): WEB _X_ TV _X_ RADIO __
TRT: 3:01
VID APPROVED BY: MAS
TYPE: TVR
EDITOR NOTES: FOR PRODUCTION THURSDAY))
((INTRO)) [[The European Union has agreed in principle to a deal that would use the proceeds from frozen Russian assets to supply weapons for Ukraine. As Henry Ridgwell reports, allies in Washington want the EU to go much further.]]
((NARRATOR))
Russia’s central bank held billions of dollars of cash and assets in Western financial institutions and companies.
Those assets were frozen by the West in the wake of Moscow’s February 2022 invasion of Ukraine.
Some 70% – amounting to more than $200 billion worth – are held in Brussels at the Euroclear depository.
The United States, along with Britain and Canada, have been pushing for those assets to be fully seized - and used to help Kyiv fight Russia’s invasion.
But Europe is being more cautious. European Union ambassadors meeting in Brussels Wednesday agreed in principle to use only the interest earned on the Russian assets.
[[RADIO VERSION: Ian Bond is an analyst at the Center for European Reform.]]
((Ian Bond, Centre for European Reform – MALE IN ENGLISH))
((cf. Zoom logo))
“What the EU is talking about is not seizing the principal - but using the interest, which might amount to 7 or 8 billion [dollars] a year and using that for the benefit of Ukraine. It’s a worthwhile sum of money but it is a tiny sum of money compared to the amount of damage that Russia has done to Ukraine.”
((NARRATOR))
The deal should be fully signed off at an EU finance ministers’ meeting next week. EU officials said "Russia would pay directly for its crimes” – and the first billion-dollar payment should be available to buy weapons by the summer.
[[RADIO VERSION: German Chancellor Olaf Scholz said Monday the funds can be used not only for procurement of weapons within Europe, but also outside Europe - because what really matters now is that weapons can be delivered as quickly as possible.]]
((Olaf Scholz, German Chancellor – MALE IN GERMAN))
“The funds available there can be used not only for procurement within Europe, but also outside Europe. Because what really matters now is that weapons can be delivered as quickly as possible.”
((NARRATOR))
Some in Europe fear the U.S. plan to fully seize Russia’s assets would trigger a lengthy legal battle - and may prompt other countries like China to sell their euro investments, destabilizing the currency.
Others expect Russia will retaliate by seizing more assets belonging to Western companies still operating in the country.
[[RADIO VERSION: Again, analyst Ian Bond.]]
((Ian Bond, Centre for European Reform))
((cf. Zoom logo))
“My view on that is these companies have had two years to get out of the Russian market. If they stayed in, it was because they thought it was OK to continue to earn money in Russia, despite the fact that it was waging a brutal war of aggression against one of its neighbors. And if they lose their shirts now, that's their tough luck.”
((NARRATOR))
EU officials hope the deal will be fully implemented by June.
That is when Hungary is due to take over the rotating EU presidency – and there are concerns that it could move to block the deal if it isn’t fully signed off - as Budapest seeks to maintain close ties with Russia.
((Henry Ridgwell, VOA News.))
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