A proposed law would allow Moscow to seize Western companies' and individuals' property and accounts in the event sanctions were imposed on Russia over the Ukraine crisis.
"[The bill] would offer the president and government opportunities to defend our sovereignty from threats," state news agency RIA quoted Andrei Klishas, the bill's author and head of the constitutional legislation committee in the upper house of parliament, as saying.
Ironically, this stuff was one element in early growth of Eurodollars. Maybe now we'll see growth in Eurorubles.
ReplyDeleteEurodollars were the means by which the Soviets & others, thought they could prevent confiscation of their $US 'assets'. What they were oblivious of, or powerless to effect, is that all Eurodollar assets are the corresponding liabilities of US banks, including the Fed, though there may be multiple iterations of assets/liabilities across different institutions.
DeleteThe Fed could have shut down the foreign trade of the Soviet Union at any time, but didn't.....
EuroRoubles would be an interesting development though.
U.S. assets? We don't have no stinking U.S. assets...
ReplyDelete