Since Russia was sanctioned, the United States, the European Union and other Western countries have been figuring out how to legally confiscate Russian assets abroad.
Not only that, but the EU is "racking its brains" on how not to provide aid funds to Hungary.
The EU freezes Russian assets, but rebuilds Ukraine
On November 30, European Commission President Ursula von der Leyen issued a statement saying that the EU had frozen 300 billion euros of reserves of the Russian central bank, as well as 19 billion euros of funds of Russian oligarchs.
As for the EU's approach, Russia expressed strong condemnation, saying that "this is an international theft that violates all rules." But despite this, Russia seems to be familiar with the EU's move, because the targeting of Russian private funds and state assets has been around for years.
(Source: Subchart.com)
However, not to mention the freezing of people's assets, but also thinking about how to dispose of people's money. Von der Leyen also said that because Ukraine has suffered 600 billion euros in damages, Russia needs to bear the responsibility of compensation and be responsible for the cost of Ukraine's reconstruction. She even suggested creating an institution to manage the money and invest it.
As for Ukraine's losses in the Russian-Ukrainian conflict, as well as the cost of reconstruction, in October this year, the World Bank is expected to be close to 350 billion euros, and the European Union is expected to need 600 billion euros. But Ukraine came up with an even more surprising figure: more than $1 trillion.
However, Ukraine's GDP in 2021 was only $200.9 billion, which is more than five times more than $1 trillion. This is estimated to blow the EU's "jaw off".
(Source: Subchart.com)
As for why the EU is surprised, it is because in the Russian-Ukrainian conflict, the EU not only helped Ukraine sanction Russia, but also provided it with huge financial assistance. On November 22, the EU provided 2.5 billion euros in economic assistance to Ukraine, compared to 6.7 billion euros since February this year.
But this is not the end, the EU also plans to provide 18 billion euros in economic assistance to Ukraine in 2023 for the reconstruction of Ukraine.
But now the economy within the EU is already in a state of burning eyebrows, its own economic recovery has not yet been done, and where is there still $1 trillion for Ukraine to rebuild? It is conceivable that the EU has thought of a potential way to raise money by confiscating and selling Russian assets, which is why it will freeze Russian funds on a large scale.
Although the EU has always claimed that the sanctions are "temporary" and that these assets will eventually be returned to their original owners, it should not be forgotten that the EU has a number of reasons to extend the sanctions. But Russia is not a "soft persimmon". On December 1, Russian Foreign Ministry spokeswoman Zakharova warned that Russia would take appropriate countermeasures if the EU did so.
Catch Hungary and don't let go? EU: Who makes you backbone
Of course, Russia is not the only one who has been "blackhanded" by the EU, even if it is its own internal member state, the EU will not let go.
On November 30, it was reported that 7.5 billion euros of EU funds to Hungary were suspended. The reason was that Hungary had not achieved the 17 legal reforms previously committed.
Although the EU suspended the €7.5 billion for Hungary, it approved €5.8 billion for Hungary's coronavirus recovery. However, Hungary still has to implement 27 "super mileage cards", including 17 legal reforms. In other words, if it is not implemented, Hungary will not receive any funding.
And the mere allocation of funds to internal members is enough to show the disunity within the EU.
(Source: Subchart.com)
In particular, Hungary, which has a conflict with the EU's position in the Russian-Ukrainian conflict, not only repeatedly said that it was the EU itself that was ultimately hurt by sanctions against Russia, but also immediately objected when the EU proposed a new financial aid to Ukraine on November 7, raising funds expected to reach 18 billion euros.
This is enough to show that the other EU member states are disgusted with Hungary's "disunity" behavior, so it has been publicly or secretly criticized by other EU member states for being "an undemocratic" country many times. But what Hungary said is not unreasonable, in the sanctions against Russia since February, the EU is estimated to have lost far more blood than Russia, but if the EU itself does not realize it, it can only suffer this pain in silence.
Text| Wei Yansong, inscription| Huang Zixin, Review, | Zeng Yi