Zelenskyy's economic advisor says frozen Russian funds should be used to rebuild Ukraine

As Ukraine faces an unprecedented crisis due to the onslaught by Russian forces, the Economic Adviser to the President of Ukraine, Oleg Ustenko, has suggested that Russia's money should be used to rebuild Ukraine after the war. He stated that Ukraine is actively negotiating for this to be the first tranche of financing for their country's post-war rehabilitation. He also said that frozen Russian funds should be used to rebuild Ukraine because Russia will never be able to reclaim those.

The Economic Advisor said that they are talking primarily about the $300 billion frozen Russian Central Bank reserves and the frozen assets of President Vladimir Putin's inner circle. Further, the official claimed that Ukraine expects financial support from its Western partners, with a total budget of up to $500 billion to restore the country.

US and EU countries block half of Russia's foreign exchange reserves

Ustenko further claimed that the United States and EU countries have blocked half of Russia's foreign exchange reserves that were available before 24 February 2022. Gold has also been sanctioned in Russia and its only option for selling gold is to do so domestically. He further said that in the domestic market, there is no particular demand for Russian gold making this asset non-existent, according to Ukrinform.

The Central Bank of the Russian Federation has approximately $150 billion in its account. However, given that Russia is a massive country, this will be insufficient to meet all of the country's needs. Ustenko said that Russia's sole option is to try to pay off its debt and possibly buy crucial imports. He further said that Russia will make every effort to keep these funds in the country and the quick dip in the value of the Russian ruble will be caused by the reduction in foreign exchange reserves.

'Frozen Russian assets should be utilised to rebuild Ukraine'

Meanwhile, earlier, the governor of Ukraine's Central Bank, Kyrylo Shevchenko also stated that frozen Russian assets should be utilised to rebuild Ukraine following the war, according to BBC. Shevchenko also called for a slew of further sanctions, ranging from halting card payments to denying Russia access to the International Monetary Fund.

(Image: @OlegUstenko/Twitter/AP)