Europe, the EU & Russian Frozen Assets: Short-Sighted or Necessary?

Vanity | October 23, 2025 | GTP-5

[CIB-173RDABN]

ATLAS — Europe, the EU & Russian Frozen Assets: Short-Sighted or Necessary?

Reports are circulating that European Union leaders are moving toward using an estimated $300 billion in frozen Russian assets—held in European banks—to support Ukraine’s war effort. Whether this involves direct seizure of the principal or only using interest generated from those assets, the implications are serious and long-reaching.

Why This Matters Beyond Russia
One of the core pillars of the global financial system is that assets held in foreign nations—especially central bank reserves—are protected under international law. If the EU breaks that precedent, it sends a message to every nation: Your money is not safe here if we decide we don’t like your government.

This may satisfy short-term geopolitical goals but could cause long-term damage to Europe’s financial credibility. Nations and private investors may begin withdrawing their reserves and deposits from European banks and moving funds to jurisdictions considered politically neutral or less likely to confiscate assets.

Potential Consequences:

• Capital flight from Europe
• Reduced foreign investment
• Higher borrowing costs for European governments
• Acceleration of alternative financial systems outside Western control (such as BRICS)
• Possible retaliatory seizures of European assets in other countries

Legal vs. Political Reality
Historically, foreign assets can be frozen during wartime or sanctions—but not legally seized and converted into spending money. For this reason, the EU is exploring “workarounds,” such as:

• Using only the interest from the frozen assets
• Creating loans backed by Russian assets without actually seizing the underlying principal
• Labeling the move as “reparations” to justify legal standing

These measures attempt to avoid outright confiscation while still monetizing the assets.

The Strategic Gamble
Europe’s leadership argues this is necessary to support Ukraine, especially as U.S. aid becomes uncertain. However, critics warn this could trigger a systemic loss of global trust in the EU as a financial safe haven. Once a nation or region is seen as willing to seize funds for political objectives, the damage to reputation may be permanent.

Bottom Line:
This decision is not just about Russia—it is about the future of Europe’s financial stability. If the EU follows through with asset seizure, it may gain short-term funds but risk long-term economic decline as nations and investors pull their money out of Europe. A safer path would be using only the income generated or creating a tightly controlled international mechanism with legal safeguards.

Summary Statement: Seizing Russian assets may appear to weaken Russia, but it could ultimately weaken Europe’s own financial credibility, drive global capital out of the EU, and accelerate the rise of rival economic systems.

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Posted as part of the ATLAS geopolitical and economic risk series. ```

[Worldtraveler once upon a time]

One trusts in a system, a company, a nation, a relationship or other entity, or one does not.

Trust can be given, and trust can be lost. A usual rule of thumb in business is that when one loses a customer's trust, regaining that is far more costly than simply supporting the trust all along. Ditto with relationships. Ditto with systems, and so.... Trust, or lose trust and have none. It's a choice, but one must bear the consequences of said choice.

[PGR88]

It’s why the Swiss model of financial asset management worked for 700 years. A small, strictly neutral country, with limited and dispersed government, deep Christian values and well-protected borders.

Large political empires stealing rivals wealth for political gain is not a recipe for financial stability or long-term advantage.

The post WWII Bretton-Woods system is officially dead.

What comes next? Very distinct and rival currency, financial, economic, trade, military and political blocs. Normal human history has returned.

[Magnum44]

Trust can be given, and trust can be lost. A usual rule of thumb in business is that when one loses a customer's trust, regaining that is far more costly than simply supporting the trust all along. Ditto with relationships. Ditto with systems, and so.... Trust, or lose trust and have none. It's a choice, but one must bear the consequences of said choice.

Gee Wally, are you talking about Europe or about Russia?

[Worldtraveler once upon a time]

--- "Gee Wally, are you talking about Europe or about Russia?"

Gee Wally, I'm talking about all of us.

[kiryandil]

Free Republic has never been known for economic literacy.

Years ago, I had to go to another forum for that.

[kiryandil]

I mean, this is BASIC stuff.

And you have asshats weighing in with their “profound” views on thieves holding your money in “trust”.

[CarolinaReaganFan]

stealing russian assets probably isn’t even legal.
but i guess those swiss villas aren’t free.
.
Russia will likely get assets and interest back eventually.
Euroweenies support Hamas by recognizing Palestine.
and ICC idiots?
they are not good allies.
Time for Bretton=Woods to die
WEF is qn enemy of the people
#MAGA

[Worldtraveler once upon a time]

--- "I mean, this is BASIC stuff. And you have asshats weighing in with their 'profound' views on thieves holding your money in 'trust'."

It fascinates me how some seemingly few Freepers seem to be able to ( or want to ) partition off some topic from another, and ignore its relationship to the world as a whole.

[Brian Griffin]

The Asiatic mind revels in vindictiveness.

[Brian Griffin]

If you’ll take money to buy votes, you are not to be trusted.

[Rockingham]

Winners are forgiven, losers get punished. Like it or not, NATO intends to win, financed in part by seized Russian assets.

[CIB-173RDABN]

“Winning a war is one thing; destabilizing your financial system and scaring off global investors is another. Seizing assets may provide short-term funding, but it could cost Europe far more in long-term investment, credibility, and economic influence.”

[Rockingham]

In the larger scheme of things, Russia is a special case, a small economy run by an authoritarian who launched a foolish war. Eventually, when the Ukraine war ends in the Russian defeat and Putin ouster that I think likely, commercial and financial relations with Europe will return to normal. Most of the Russian assets now encumbered will be released, with Russian energy exports taxed to pay off the lien on those assets.

[UMCRevMom@aol.com]

“In the larger scheme of things, Russia is a special case, a small economy run by an authoritarian who launched a foolish war. Eventually, when the Ukraine war ends in the Russian defeat and Putin ouster that I think likely, commercial and financial relations with Europe will return to normal.”

I appreciate your insightful comment.
Thank you

[UMCRevMom@aol.com]

I found both of these videos thoughtful involving the economic situation in Russia:

1. RUSSIA Crashing
Joe Blogs
452K subscribers
10-27-2925 3:00 p.m. EDT
Length 17:03
https://www.youtube.com/watch?v=VLArFSvNozE

“Russia’s stock market has been falling steadily since February, wiping billions off company valuations and shaking investor confidence. But this isn’t part of a global downturn – in fact, the U.S. market has continued rising over the same period. So what changed?”

In this video, we break down:

• Why February was the turning point
• How the war economy has started to hit structural limits
• The impact of weaker oil revenues
• Why sanctions are now causing long-term damage
• And the growing fear around ownership rights and forced state extraction

This is not just a correction.
This is confidence breaking in the Russian economy.

For specific details please check out the CHAPTER list below.

Chapters:
0:00 Intro
1:18 S&P 500
2:40 MOEX
3:46 TURNING POINT
4:50 WAR ECONOMY
6:34 CONFIDENCE
7:37 SANCTIONS
8:55 INVESTORS
11:44 SUMMARY & CONCLUSION

2. Russia is Begging to Have Oil Sanctions Reversed
Jake Broe **I am a United States Air Force veteran who served as a Nuclear and Missile Operations Officer (13N).
659K subscribers
Oct 27, 2025
Length 34:55
https://www.youtube.com/watch?v=trhEm9qDz5Y

“Ukraine is continuing to destroy Russia’s energy and electrical substations in the border regions and they recently struck a dam in Belgorod. Putin has publicly claimed the sanctions placed on Russia’s oil companies by Trump will change nothing about the war, but he was fast to send his envoy to America to lobby to have the sanctions immediately lifted.”

[Worldtraveler once upon a time]

Two videos were recommended to you on this thread, one from Joe Blogs, a Brit. Here is some background information on this "content creator."

Please Subscribe to Help me Hit 500,000! 😁❤️👍 "9,590 views 5 months ago"

Source of the above graphic: "British Breakfast"

Joe Blogs on "income on line" through a YouTube channel: 5 BEST PASSIVE INCOME IDEAS - How to make money online - 5 things everyone can do STARTING TODAY Jun 20, 2021

As to his "content" posted to a thread about "Europe, the EU & Russian Frozen Assets: Short-Sighted or Necessary?" here is his earlier video on that same "passive income" channel.

RUSSIA - CUBA On Brink of ECONOMIC COLLAPSE. Food & Oil SHORTAGES, Power BLACKOUTS & Out of CURRENCY May 17, 2022

Similar message, Oct 27, 2025. One observes that YouTube channels have become "news" when in fact they are "content creation" in the verbiage of Google/YouTube. And, as Joe Blogs says openly, they are about "how to make money online."

[UMCRevMom@aol.com]

I hope all enjoyed both different perspectives on the economy. :)

[Worldtraveler once upon a time]

--- The thread addresses "different perspectives." Here are "from the source" perspectives about another YouTube content creator -- according to that YouTube content creator.

Jake Broe, according to YouTube, "joined October 26, 2012." His Patreon account states "Jake is a U.S. Air Force veteran who currently makes videos about the war in Ukraine. Considering being a patron if you receive value from his videos!"

Here are some of his earlier videos, all hotlinked for ease of verification, to demonstrate his commitment to "value:"

My First 1000 YouTube Subscribers Nov 20, 2019

How to Manage YouTube Subscriptions w/ PocketTube Jan 12, 2020

How Much I Make on YouTube with 10,000 Subscribers May 15, 2020

How much YouTube paid me my 1st year ($$$) Dec 4, 2020

How Much YouTube Paid Me For One Million Views Mar 16, 2021

How Much YouTube Paid Me in 2021 Jan 9, 2022

As to his "news" from Feb 28, 2022 ---

Russia's Economy is COLLAPSING Feb 28, 2022

And then, as the Ukraine-Russia war goes on, Jake Broe says to his public:

YouTube Keeps Messing With Me Jul 20, 2022

If you are a "paid subscriber," you can see his:

Members only: My Failed YouTube Channel from 2012 Apr 26, 2025

Members only: My Breakfast Routine Apr 26, 2025

Jake Broe has said Russia's economy is collpasing for three and a half years. And only recently he wants to tell his paid subscribers about his "breakfast routine."

He's an interesting fellow, especially when one uses YouTube's own info to have a look at his first foray into YouTube-World: Jake Broe Videos Click on "Oldest."

But THE most interesting part of Jake Broe -- found in his own words per the link below -- is"

"America is now a fascist state and all Free Speech that MAGA does not like will be silenced.

Trump used the regulatory agencies of the federal government to cancel Colbert and Kimmel and now he is calling for the cancellation of Fallon and Meyers.

Once everyone Trump hates has been taken off TV he will start pressuring tech companies like Google to delete YouTube channels like mine.

Anyone who criticizes Trump and MAGA’s fascist agenda will eventually be silenced."

Source: John David Balla's Post Jake Broe's statement of Septermber 17th, on "John David Balla's Post"

This is who Jake Broe is. Fully against President Trump. And this same Jake Broe has been regularly cited in Free Republic threads as among "different perspectives."

Fully and COMPLETELY anti-Trump, and openly stating that these United States of America are a "fascist state."

Yeah, that Jake Broe.

[kiryandil]

LOL!

I’ve called him “Blow Jogs” for YEARS.

On his blog, “Russher” has been “clapsing” since time immemorial. He’s a total buffoon, and FR buffoons and dimwits like Mumsie Klebb hang on his every word.