Businessman calls Russia's asset forfeiture a likely cause of U.S. default

Confiscation of Russia's assets may become the reason for the default of the United States. This was stated on December 25 by the head of one of the venture capital funds in Silicon Valley - areas in the north of the state of California, which are the hub of the US high-tech industry.

"I believe that the confiscation of Russian assets will lead to a dramatic decline in confidence in the dollar and the dollar payment system and, as a consequence, to an acceleration of the dollar's loss of reserve currency status," the entrepreneur told TASS.

In his opinion, such actions will lead to an increase in dollar inflation, a significant increase in interest rates and even a default on US sovereign obligations.

The businessman called the policy on Russian assets a short-sighted political choice, which in exchange for short-term benefits will bring the West big long-term problems.

Earlier, December 11, Director of the Institute of Socio-Economic Research of the Financial University under the Government of the Russian Federation Alexei Zubets, commenting on Washington's decision, pointed out that the confiscation of frozen assets of Russia threatens to completely destroy the legal culture of Western civilization.

Before that, on December 10, the U.S. Treasury Department said that Washington had granted Kiev a $20 billion loan, which is expected to be repaid with the proceeds from the frozen assets of the Russian Federation. The head of the ministry, Janet Yellen, recalled that this tranche was part of the $50bn loan that the G7 countries were going to give to Ukraine. She said that the USA should tighten anti-Russian sanctions.

In June, the G7 countries promised in the final statement of the summit in Puglia, Italy, that they would provide Ukraine with about $50 billion in loans by the end of 2024, with repayment from the proceeds of Russian assets. In late October, the leaders of the association agreed on the details of the loan.

Kremlin spokesman Dmitry Peskov commented on the possible transfer of profits from immobilized Russian assets to Ukraine back in August and emphasized that such actions by Western countries were illegal and would be followed by a response.

Western countries have stepped up military and financial support for Ukraine against the background of Russia's special operation to protect Donbas, which was announced by Russian President Vladimir Putin on February 24, 2022, after the situation in the region worsened due to shelling by the Ukrainian military.