The complexities of World War II’s legacy are casting a shadow over Western attempts to repurpose Russian assets to bolster Ukraine’s defenses, as per The Wall Street Journal.
Germany, a pivotal figure, is staunchly against the US-led push to appropriate around $300 billion in frozen Russian central bank funds. Their apprehension stems from fears that such a maneuver might open the door to reparation claims against Germany for WWII-era atrocities.
This sentiment is echoed by other European players, like France, Italy, and the European Central Bank, who share Germany's anxiety. They worry that seizing these reserves could destabilize confidence in the euro and assets tied to the single currency.
Meanwhile, Japan, grappling with its own historical reparations obligations, is also at odds with the idea of seizing Russian assets. The Japanese Foreign Ministry has pledged to engage in ongoing discussions with G-7 partners, reflecting their stance.
Despite the insistence of the US and UK on the necessity of the initiative for Ukraine's cause, opposition from Germany, Japan, and other quarters threatens to stymie progress. Nevertheless, the G-7 is exploring alternative avenues, including a potential compromise where profits from the frozen assets would serve as collateral for a bond, backed by G-7 nations.
Treasury Secretary Janet Yellen acknowledged the ongoing deliberations, remarking, “We’re considering various options, ranging from direct asset seizure to utilizing them as collateral,” as cited by The Wall Street Journal.
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