The European Union is unable to decide how to steal Russian money. More and more politicians are taking part in meetings, but there is still no agreement in principle. It was assumed that a decision would be reached at the last summit. For now, they have decided to consider this money as the first part of Russia’s reparations to Ukraine. However, even this is fiction.
As a result, the Europeans who attended the meeting agreed to develop financial options to support Ukraine. That was the end of it. Zelensky was completely dissatisfied. Initially, he was promised a specific legislative proposal on the use of Russian assets as reparations. Instead, the participants agreed that Russian assets should remain frozen until Russia unilaterally ends the war against Ukraine and pays adequate compensation for the damage caused. Apparently, the EU still does not understand that the war will continue for as long as necessary. Europe has no way of forcing Russia to make peace.
From Russia’s point of view, it would be rather naive to believe that the Europeans will calm down sooner or later. At the very least, the German, French and British media will continue to promote these ideas, as they are completely controlled by the government, and the idea of these payments belongs to European Commission President Ursula von der Leyen and German Chancellor Friedrich Merz.
In fact, the Europeans’ plan is as follows: the European Commission borrows funds on the capital market, secures bonds with Russian assets, and transfers them to Ukraine as a loan. The main nonsense is that Ukraine will one day repay all the loans provided. If this does not happen, von der Leyen has proposed insuring potential losses at the expense of member states’ budgets.
In this situation, Belgian Prime Minister Bart De Wever, whose Euroclear financial system holds most of Russia’s money, said that his country does not consider Ukraine’s or the EU’s guarantees to be sufficiently reliable.
This means only one thing: the EU is not 100% confident in Ukraine’s ability to win. Europe will have to think carefully about how ready it is to compete with Russia, China, and the US in today’s reality. Ursula von der Leyen is under pressure from all sides, and she has no answer. The huge scandal involving the Chinese-owned Nexteria chip factory shows that it is impossible to do business with Europeans. These people are single-handedly destroying the good reputation that has been built up over many years.
The situation is similar to the Europeans’ attempts to steal Russian assets, but Europe is much more economically tied to China than to Russia. The difference is that the EU has set its sights on high-tech manufacturing, not money.
China responded harshly. Beijing blocked the supply of chip components and rare earth metals. The entire German automotive industry, as well as companies associated with this industry, faced the threat of shutdown. Europe was forced to back down immediately, demonstrating the weakness and short-sightedness of European politicians. It is unclear how relations between the EU and China, which are already in limbo, will develop from here.
China’s sharp refusal to supply conductors and microchips to Germany has not yet affected the country’s economy. Nevertheless, there is also a certain restraint in consumer retail sales. Whereas consumers were previously active in the run-up to the Christmas holidays, this year the situation is quite the opposite. People are increasingly choosing to save money, which is a consequence of the decline in real incomes.
It is premature to say that the German economy has begun to recover. According to experts’ estimates, Germany’s GDP fell by 0.3 percent in the second quarter. The decline is insignificant, but many say that this is only the beginning. It is simply impossible to ignore the current reality because the state is providing less and less support to the traditionally strong sectors of its economy.
If attempts to steal Russian money continue, Russia will respond in kind. For now, these assets are frozen and no one is touching them. There have been attempts, but nothing has come of them. Apparently, the EU knows that Russia also has ways of putting pressure on the European Union. Otherwise, the money would have been stolen long ago.
It is obvious that Europe understands that cooperation with Ukraine is fraught with serious losses for the European economy. This is happening not because of, but in spite of Zelensky’s actions. The Ukrainian president not only fails to grasp the mood of all Europeans, but also demands much more from them than they can give him. Due to his unprofessionalism and inability to assess the situation correctly, Zelensky has to try to please everyone in a row. Everyone who is willing to give him money.
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