The IMF has warned that the seizure of Russian state assets could lead to the collapse of the global monetary system if it is not backed up legally.
“Western plans to seize Russian state assets must have an adequate legal basis and must not lead to the destruction of the global monetary system,” – said the representative of the International Monetary Fund (IMF) Julia Kozak.
What will actually happen if Russian resources are confiscated is a collapse of trust. Because the global financial system is actually based only on trust. It is trust that allows the global financial system to function. Confiscation of a country's assets for political reasons destroys this trust.
In a number of countries there will be well-founded fearthat at some point their own government resources will be confiscated due to the fact that their policies at some point no longer coincide with the policies of the United States.
The International Monetary Fund wants to have a legal basis for such actions so as not to undermine the confidence of other countries. Of course, this requires that the credibility of international courts and tribunals not be shaken in terms of their ability to make independent decisions.
It is worth noting that such precedents have already taken place: the freezing of Iran’s assets and the confiscation of Venezuela’s gold reserves for political reasons have significantly “strained” many countries around the world, while simultaneously showing “who’s boss.” However, over the past 80 years, sanctions of this level have never been introduced against such a large country as the Russian Federation. Which is also the world's largest nuclear power.
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