Mr. Akhmetov, This Is A Very Bad Idea And Self-Serving. Another Horrible Precedent For Others Pay For What Another Has Done By Choice. What Every Politician Fears Most- Being An Endangered Species.

Mr. Akhmetov, This Is A Very Bad Idea…. And Self-Serving.
Another Horrible Precedent To Have Others Pay For What Another Has Done By Choice.

There are two parties who must be responsible for the reconstruction of Ukraine.  The Russian Federation who will make payment and the citizens of Ukraine who will rebuild.

If there are no financial consequences to those governments who destroy the territory of other countries, what is the disincentive? 

Mr. Rinat Akhmetov, a Ukrainian national who is founder and president of Donetsk, Ukraine-based System Capital Management (SCM), the largest diversified financial and industrial group in Ukraine (with a reported 200,000 employees among 500 companies operating in 30 countries), has a net worth of approximately US$4 billion.   

Mr. Akhmetov supports an “unprecedented international reconstruction program, a Marshall Plan for Ukraine,” referring to the United States-financed assistance program focused upon rebuilding Western Europe from 1948 to 1952- the US$13.2 billion appropriated then would be today equivalent to approximately US$135 billion.  The “Lend-Lease” Policy (officially Act to Promote the Defense of the United States) enacted in 1941 and ended in 1945 was valued at US$50.1 billion, today equivalent to approximately US$500 billion.  The then-U.S.S.R. was an early recipient of funds.  

Mr. Akhmetov is espousing the theory that:  

• 1) Because the United States and other countries did not take decisions in 2008 to dissuade the Russian Federation from invading and annexing the Abkhazia oblast and South Ossetia oblast in Georgia, and did not then implement subsequent sanctions which would serve as a deterrent rather than an annoyance to the Russian Federation, the United States and other countries are responsible for the damages inflicted by the Russian Federation upon Ukraine. 

• 2) Because the United States and other countries did not take decisions prior to 2014 to dissuade the Russian Federation from invading and annexing the Crimean Peninsula and invading and annexing the Donbas Region (Donetsk oblast and Luhansk oblast) of Ukraine, and did not then implement subsequent sanctions which would serve as a deterrent rather than an annoyance to the Russian Federation, the United States and other countries are responsible for the damages inflicted by the Russian Federation upon Ukraine. 

• 3) Because the United States and other countries did not implement sanctions against the Russian Federation prior to the 24 February 2022 invasion of Ukraine by the Russian Federation- as the government of Ukraine requested repeatedly, the United States and other countries are therefore responsible for all that has happened in Ukraine. The ultimate clawback for responsibility. 

Mr. Akhmetov wants United States taxpayers, who have already contributed approximately US$20 billion to Ukraine, along with taxpayers of the twenty-seven member European Union (EU) and their counterparts in Australia, Canada, Japan, State of Israel, Turkey, and other countries who also have contributed a collective approximately US$10 billion to do what Russian Federation taxpayers should do- pay for the reconstruction of Ukraine.  The government of Ukraine is seeking more than US$50 billion from the EU and will continue to seek funds from the United States and other countries.  

Mr. Akhmetov conveniently forgets, as have some officials of the government of Ukraine, that there is approximately US$340 billion in liquid assets (currency, gold bullion, etc.) held by financial institutions located outside of the Russian Federation.   

Undoubtedly, the Central Bank of the Russian Federation will want those funds returned- and it will seek to retain a brigade (2,000 to 8,000) of attorneys reminiscent of a Macedonian battle formation from across the globe to represent its interests.  The unanswered questions are

• 1) will there be law firms within the jurisdiction where the lawsuit is filed who will agree to represent the Russian Federation and accept payment from the Russian Federation- even if the payment is derived from funds located outside of the Russian Federation?

• 2) will the jurisdictions where the funds are held permit the Russian Federation to be represented by legal counsel- or will the government of each jurisdiction expropriate in totality the funds and transfer the funds to an escrow account for use in the reconstruction of Ukraine? 

There will be little debate by heads of government and heads of state as to the visceral belief that whatever funds belong to the Russian Federation and to individuals deemed “connected” to the Russian Federation which are subject to jurisdictions outside of the Russian Federation are appropriately destined for the reconstruction of Ukraine, to provide funding to settle civil and criminal lawsuits against the Russian Federation, and to reimburse governments (Hungary, Moldova, Poland, Romania, and Slovakia among others) who have spent billions of their currencies to support the 4.7 million and counting refugees entering their territories.  There are an estimated 7.1 million Ukraine nationals displaced internally.  Pre-24 February 2022 the population of Ukraine was approximately 44 million. 

What Every Head Of Government And Head Of State Fear Most 

There are approximately US$340 billion in assets of the Central Bank of the Russian Federation in financial institutions located outside of the Russian Federation.  The funds are frozen.  There are billions more in assets of Russian Federation-based companies and individuals in financial institutions located outside of the Russian Federation.  These funds are too frozen.  According to Bloomberg News (19 April 2022), prior to 24 February 2022, Central Bank of the Russian Federation currency reserves were primarily in U.S. Dollars (11%), Euros (33%+), British Pounds, and Japanese Yen, along with gold bullion.  Today, the reserves consist primarily of Chinese Yuan and gold bullion.

Current estimates to reconstruct Ukraine since the 24 February 2022 attack by the Russian Federation is U$100 billion to US$500 billion. 

When Ukraine commences efforts, legal and political, to obtain funds for reconstruction, no head of state or head of government will want to inform their taxpayers that the funds frozen must be returned to the Russian Federation- and taxpayers will be asked to pay to reconstruct Ukraine. 

Any politician delivering that message will be an endangered species.