The reconstruction of Ukraine after the military actions caused by Russia requires huge resources – according to estimates, the amount of damage reaches about 400 billion pounds. As part of the peace agreement, which is supported by US President Donald Trump, it is possible to withdraw more than 225 billion pounds (more than 300 billion dollars) of frozen Russian assets abroad. AgroReview reports on this
Potential reparations and Russia’s reaction
Political scientist and expert on Eastern Europe Mark Galeotti notes: “It is indicative that Moscow will scream and spit, but in fact it will perceive this as a way to pay reparations from monetary assets that it will not be able to return anyway.”
According to one European diplomat, Russia is likely to react emotionally, but in reality this will become a way to force reparations from frozen assets.
Prospects for the return of territories and Ukraine’s role in reconstruction
It is analyzed that the issue of returning the territories occupied by Russia and discrediting the Putin regime will depend on Ukraine’s ability to build a stable and successful state in the long term. The fear of new aggression will remain, but Kyiv will use tactics called the “hedgehog strategy”: to make itself so prickly that it would be difficult and risky for Moscow to resume military operations.
The National Bank of Ukraine assures that the confiscation of Russian assets will not significantly affect the role of the euro in the global economy. Prime Minister of Ukraine Denys Shmyhal stressed that Russia’s frozen assets are not enough to restore the country and it is necessary to look for additional sources of financing. He suggested that the West introduce duties on imports of goods from Russia and direct the collected funds to restore Ukraine.
