https://sputnikglobe.com/20251003/why-western-countries-would-have-much-to-lose-from-using-frozen-russian-assets---1122904412.html
Why Western Countries ‘Would Have Much to Lose’ From Using Frozen Russian Assets
Why Western Countries ‘Would Have Much to Lose’ From Using Frozen Russian Assets
Sputnik International
The first results could be “a widespread distrust of countries that commit what can be called a crime,” veteran French economist Jacques Sapir told Sputnik.
2025-10-03T06:43+0000
2025-10-03T06:43+0000
2025-10-03T06:43+0000
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Sapir singled out more consequences, including rapid flight of capital from Western countries, driven by a collapse in trust.Distrust would extend to currencies in which the frozen Russian assets are denominated—the euro and dollar, according to the economist.He suggested that Global South countries would gradually refuse to use these currencies—first in financial transactions, then in trade.The economist said that for debtor nations like France, this would mean a sharp rise in interest rates, caused by an increased “risk premium.”This could accelerate the creation of a more modern alternative to SWIFT, Sapir stressed, noting that potential use of frozen Russian state assets would further politicize international financial and economic relations.
https://sputnikglobe.com/20251002/loan-to-ukraine-from-russian-frozen-assets-to-undermine-confidence-in-europe-1122896746.html
https://sputnikglobe.com/20250921/frances-macron-admits-that-seizing-frozen-russian-assets-would-break-international-law-1122829496.html
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frozen russian assets, implications from the west's use of frozen russian assets, financial markets, distrust of western countries
frozen russian assets, implications from the west's use of frozen russian assets, financial markets, distrust of western countries
Why Western Countries ‘Would Have Much to Lose’ From Using Frozen Russian Assets
The first results could be “widespread distrust of countries that commit what can be called a crime,” Jacques Sapir, veteran economist and director of studies at the Paris-based School for Advanced Studies in the Social Sciences, told Sputnik.
Sapir singled out more consequences, including rapid flight of capital from Western countries, driven by a collapse in trust.
Distrust would extend to currencies in which the frozen Russian assets are denominated—the euro and dollar, according to the economist.
He suggested that Global South countries would gradually refuse to use these currencies—first in financial transactions, then in trade.
“The loss of credibility would cause a rapid split in financial spaces, and in particular in the debt market, whether public or private,” Sapir pointed out.
The economist said that for debtor nations like France, this would mean a sharp rise in interest rates, caused by an increased “risk premium.”
He added that the problem of the “immense US debt” would also come to the fore as credit agreements would become increasingly political, accelerating the breakup of global financial markets.
This could accelerate the creation of a more modern alternative to SWIFT, Sapir stressed, noting that potential use of frozen Russian state assets would further politicize international financial and economic relations.
“[…] Economic rationality is often hostage to ideological prejudices and political choices made under pressure from the US,” Sapir concluded.
