As a result of the Russian invasion of Ukraine, the United States and several European countries banned the transfer of money to the Russian central bank and the Ministry of Finance.
Since then, more than USD 300 billion belonging to Russia has been frozen in banks abroad, in most cases European.
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Now several top American politicians want to give the frozen funds to Ukraine. On Saturday, the House of Representatives passed a bill that could allow the United States to seize Russian money held in American banks.
If that were to happen, Russia is promising a response, and according to Putin ally Valentina Matviyenko, the whole thing could hurt Europe more than it hurts Russia.
Reuters and CNBC write that.
– We will respond in an appropriate way
Matviyenko is speaker in the Russian upper house and a member of Russia’s Security Council.
– The Europeans know that we will react very harshly, and that we will respond in an appropriate way, she says according to the media.
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She does not reveal any details about what the response may entail, but claims a draft law that will contribute to retaliation is ready.
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Several are skeptical
The finance ministers and central bank governors from the G7 countries agreed last week to continue cooperation in order to use frozen Russian funds to help Ukraine.
In March, Russia warned the EU against using frozen Russian funds.
According to Reuters, several economists and politicians are worried that the use of Russian funds could help create an unfortunate trend.
