The European Union is preparing a "reparations loan" for Ukraine worth up to €130 billion, to be backed by the direct disposal of frozen Russian sovereign assets. This is not about future profits; it is the confiscation of state capital. This decision is an irrevocable strategic mistake.

 https://x.com/angeloinchina/status/1971101706797932805

Angelo Giuliano 

@angeloinchina

The European Union is preparing a "reparations loan" for Ukraine worth up to €130 billion, to be backed by the direct disposal of frozen Russian sovereign assets. This is not about future profits; it is the confiscation of state capital. This decision is an irrevocable strategic mistake. •Unprecedented Confiscation: This is not a freeze but an outright seizure. It obliterates the international legal principle of sovereign immunity and makes every nation's reserves held in the EU vulnerable to political confiscation. •Immediate Capital Flight: Neutral and non-aligned nations will now urgently withdraw their sovereign funds from the EU. The bloc is no longer a safe financial jurisdiction. •Termination of Reserve Status: The euro will instantly lose its status as a strategic reserve currency. Its foundation—being a safe store of value—is destroyed. •Catastrophic Borrowing Costs: The EU and its member states will face prohibitively high interest rates. Lenders will see lending to the bloc as high-risk, given the precedent that assets can be seized. •Weaponizing the Financial System: This move constitutes a full weaponization of the Western financial system, accelerating its fragmentation and undermining the EU's own long-term economic security for a short-term political goal.

Last edited4:37 PM · Sep 25, 2025

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https://x.com/angeloinchina/status/1971101706797932805