Russia’s $10 B Treasure in the U.S. Should Be Turned Against Putin.

Janet Yellen says efforts are underway to package a $50 billion loan to Ukraine using frozen Russian funds



The US and its allies are getting serious about a plan to finance Ukraine using interest earned on Russia's frozen assets. Under the idea, these profits would be bundled together into a sizable loan,
a possible means of survival for Kyiv.

"Showing that we do have the means of translating earnings on the frozen assets into a stream of support for Ukraine, I think, is an important way to demonstrate that we're not about to fold,"
Treasury Secretary Janet Yellen told The New York Times. "We're going to be able to help Ukraine."

If the Group of 7 leaders are able to finalize the loan's details in a meeting next week, it could make this a reality for Ukraine. So far, reserves have sat untouched in depositories, such as Euroclear; there,
a trove worth $206 billion is generating over $3 billion in interest a year.

 

BRICS invited Saudi Arabia to join the bloc during the 2023 summit and the Kingdom is yet to accept the invitation and provide an answer.
But, as reported today, it has Started Issuing US Dollar Bonds, in the process, giving the de-dollarizers the significant finger

 

the double whammy of the Ukraine invasion and de-dollarization is killing the Russian economy slowly.

Amid Inflation Woes, Russia’s Central Bank Raises Rates from 16% to 18%;
the evil empire's inflation rate is in the 6 - 7% range


as a point of reference, the US central bank's discount rate is ~~ 5.5%, w an inflation rate around the 3% range​

 

so, how is the nascent de-dollarization effort (by China/India/Russia) doing?

Even China’s Exporters Don’t Want the Chinese Yuan

The de-dollarization initiative kick-started by BRICS is becoming harder to achieve due to the rising US dollar. Exporters and businesses are at the receiving end as BRICS promised
to uplift the Chinese Yuan and local currencies for trade. In addition, currency investors believe that the Chinese Yuan will only dip further against the US dollar this year.
​

Over 98% of Chinese banks do not accept direct payments from Russia

This could lead to problems with the supply of goods to Russia and a price rise.

China's regional banks, primarily focused on the domestic market, have been a safe haven for Russian companies for several months in a row.
Now Russian businesses are trying to make payments through third countries.

in China, while It is possible to transfer funds through branches of Russian banks but they sell yuan to customers at the Central Bank's exchange rate with a 5% surcharge.
In addition, many Chinese companies do not accept money from branches of Russian financial institutions.​

 

so, how is the "de-dollarization" programmdoing?


Russian banks say they've run out of yuan as Chinese firms pull away from the nation

Payment scuffles between Russian companies and Chinese banks have escalated in recent weeks, with nearly all Chinese banks stopping transactions with Russia
​

Chinese banks are more hesitant to trade currency in Russia after the US threatened to impose secondary sanctions on countries doing business with Russia while it continues its war against Ukraine.

The payment difficulties are a problem for Russia's economy, which has grown more isolated from global markets and consequently more reliant on China's yuan after being targeted by Western sanctions in 2022.

 

Bipartisan measure would allow DOJ to more quickly seize Russian oligarchs’ private jets, yachts,
and other high-value assets for delivery to aid Ukraine

U.S. Senators Sheldon Whitehouse (D-RI) and Lindsey Graham (R-SC) announced that their Asset Seizure for Ukraine Reconstruction Act was included as part of a manager’s amendment to the
Senate’s FY2025 National Defense Authorization Act.

The bipartisan measure would allow the Department of Justice to seize high-value assets owned by sanctioned Russian oligarchs more quickly through existing administrative forfeiture processes and
then transfer the proceeds from their sale to Ukraine.