US piloting of G7 endangers world
By Syed Ali Hassan
Iran Daily’s correspondent in Pakistan
The US and UK have successfully convinced the G7 group to use the interest earned on profits from Russia’s frozen assets to provide $50 billion in financial aid to Ukraine. In essence, a betrayal of trust, this plan was announced at the end of the G7 annual summit on Thursday. The US administration believes this decision will force Russia to halt its war in Ukraine.
The G7 summit, comprising the US, the UK, Germany, Italy, Canada, Japan, and France, plus “the non-enumerated member”, the European Union, was held in Puglia, Italy. However, the summit did not consider any plans to end the Israeli blockade and genocide in Gaza, despite the UN Security Council’s resolution calling for a cease-fire. Israeli brutal military operations against the populace continue, yet the G7 countries have taken no practical steps to stop them. It is impossible to ignore how the US has subordinated the NATO military alliance and wealthy European nations, and works to ensure its imperialist dominance rather than prevent wars.
Ukrainian President Volodymyr Zelensky welcomed the G7 plan to use profits from Russia’s frozen assets to provide $50 billion in financial aid to Kyiv. Invited as a special guest to the G7 summit, Zelensky described the support package as crucial for Ukraine’s victory against Russia. However, a few hours after the plan’s announcement, Russian Foreign Ministry spokeswoman Maria Zakharova indicated that Moscow would respond to this betrayal, warning that the US and its European allies would face severe consequences.
Zelensky’s provocative actions led Russia to take punitive measures against Ukraine in 2022, prompting several Western countries to freeze Russian central bank assets worth approximately $300 billion, which yields an annual profit of $3 billion.
Most of these frozen assets are managed by the European Union. If the plan to earmark the profits for backing Ukraine is implemented, European countries will most likely bear the brunt of Russia’s retaliatory actions. Western businesspeople with billions in Russia are concerned that Moscow might freeze their assets in retaliation. Thus, the US is sacrificing Europe by escalating Russia-Europe tensions, potentially leading to further crises.
American officials claim that the profits from frozen Russian assets are not owed to Russia under existing agreements. The G7 sees this as a way to support Ukraine without directly seizing Russian assets, though Russia can challenge this in European courts.
US President Joe Biden and his administration aim to put pressure on Russia’s economy by extending the Ukraine conflict rather than seeking a lasting resolution. Shortly after the G7 summit agreed to lend $50 billion to Ukraine, Biden and Zelensky signed a 10-year security agreement, with Zelensky calling it a historical day. Biden also stated that the G7 measures signal to Putin that he cannot defeat them.
The agreement stipulates that in the event of a future Russian attack, the US and Ukraine must consult at the highest level within 24 hours, and that includes commitments to stabilize Ukraine’s military, provide training, and support its domestic arms industry. Zelensky sees this agreement as a bridge to NATO membership, though the current conflict with Russia makes immediate membership unlikely, as it would obligate NATO countries to go to war with Russia. Yet, the Americans are using Russian funds to encourage war with the 10-year security agreement.
The decision to allocate the interest generated from frozen Russian assets for Ukraine has significant geopolitical implications and is expected to provoke a strong response from Russia. Moscow may target Western companies operating within its borders, with President Putin already authorizing the seizure of American companies’ assets in retaliation for any foreign seizure of Russian assets. The US actions regarding Ukraine are likely to exacerbate rather than extinguish the conflict.