Russia placed reserves in countries that cannot be affected by EU's policy, claims Borrell

EU Foreign Minister Josep Borrell on Sunday announced that more than half of the central bank reserves of Russia will be blocked as part of the new European Union sanctions against the nation. However, Borrell also confessed that Russia in recent years has successfully placed reserves in countries that cannot be affected by the bloc’s policy. Speaking at a news conference, the top EU diplomat noted that Russia has been financially preparing for the current situation and future sanctions, moving its resources away from the dollar and investing in euros and Chinese yuan. 

On Sunday, Josep Borrell said that it is impossible to cut off the financial system of a whole country that is highly interconnected with others using “scissors”. But he also stated that he would provide the political endorsement of the 27 EU member states for a new package of sanctions against Russia. Borrell announced that more than half of the central bank reserves of Russia will be blocked as part of new EU sanctions against the country. 

"With these measures, more than half of the central bank reserves of Russia will be blocked," the top EU diplomat said. 

EU to provide finance to purchase weapons for Ukraine

Further, speaking alongside Borrell, European Commission chief Ursula Von der Leyen said that under the new package, “important banks will be excluded from the SWIFT system" - the high-security network that connects thousands of financial institutions around the world. She also announced that the EU will provide finance to purchase weapons for Ukraine, adding that this is the first time the bloc has ever done so. 

Josep Borrell said the EU is doing so "because this war requires our engagement in order to support the Ukrainian army."

"We asked for SWIFT and we asked for arms and now we are delivering on both sides," he added. 

Moreover, the EU Foreign Minister stated that the European leaders believe that they must keep the financial system working so that ordinary citizens can engage in certain activities. But he also emphasised that the level of disconnection of Russian banks from the international flow has been “carefully” calibrated to create maximum damage to the Russian financial systems while maintaining a minimum level of interconnection with other financial systems.

Meanwhile, it is to mention that Russia launched an offensive on Thursday, 24 February, with a series of airstrikes on cities and Ukrainian military bases, followed by a ground assault that rolled forces in from several areas in the east. According to Ukraine's deputy defence minister Hanna Malyar, the country's army has killed approximately 4,300 Russian troops and has destroyed over 140 Russian armoured tanks, 27 aircraft and 26 helicopters. Lakhs of people have been forced to be internally displaced owing to rampant bombings on residential buildings in the eastern Ukraine region.

(Image: AP)