Every mainstream news agency was this week reporting that the European Union is using US$1.6 billion from seized Russian assets "to support Ukraine", focusing on "defence and reconstruction". But it's not true.
The small print of actual statement, not quoted by the media, shows that the European Union is taking the entire sum of money, rightfully belonging to the Russian people, for itself.
SELF-PAYMENT FACILITY
Ninety per cent of the cash actually goes to a fund known as the EPF. This technically stands for "European Peace Facility" but the name is the opposite of what it does: it is a weapons financing operation—for EU self-payment.
European countries take money from the EPC when they want reimbursement for arms and ammunition (often not the best quality) they have already sent to Ukraine.
The remaining ten per cent also goes to the European Union, directly to the EU budget. This money is also earmarked for war purposes, providing weapons for Ukraine to use against Russia.
MONEY 'FOR SUPPLY OF WEAPONS'
However, the EU has said that a fraction of the 10 per cent MAY be diverted to reconstruction if countries don’t want "their share" of the Russian cash used for military purposes.
This allows EU leader Ursula von der Leyen to claim that the money is for Ukraine to use for reconstruction when in fact it will be 95 to 100 per cent used for weapons and military expenses.
The details are clearly outlined in the 21 May European Union statement detailing the forthcoming use of the Russian money. Key sentence:
"In 2024, 90% will be devoted to the supply of military equipment through the assistance measures funded under the EPF and 10% for the EU budget."
The statement quotes EU official Věra Jourová: "This initiative not only aids Ukraine in its recovery but also underscores our commitment to upholding international law and justice." Her title is Vice-President for Values and Transparency.
LOSS OF TRUST
The EU move is fraught with danger. The European Union's population is just six per cent of the world, and many other regions and countries across the globe have expressed dismay at the use of the Russians' money in this way. Saudi Arabia, for example, warned that it would sell some or all of its European debt if the move went ahead, Bloomberg reported.
Other analysts have expressed concern that the EU move would gravely reduce trust in the west, and show the rest of the world that de-dollarization must be speeded up.
by Nury Vittachi
Lai See(利是)
** The blog article is the sole responsibility of the author and does not represent the position of our company. **
In the latest international upheaval, Europe is taking the hardest hit. After 300 years of modern civilization and the churn of imperial powers, that era is gone, and a better tomorrow is nowhere in sight.
Europe has one problem: it cannot take care of itself. “No one really knows whether Europe would still be able to produce toothpaste if it weren’t for China,” the EU Chamber of Commerce said.
Europe doesn’t make toothpaste; it sells luxury brands. Fine — look at the latest news. Reuters reports that the U.S.-Israel-Iran war has delivered a blow to European luxury labels. Sales at Dubai’s upscale malls, packed with wealthy shoppers, have fallen 50 percent, and LVMH, France’s largest luxury group, says wealthy Middle Eastern customers have paused spending in Europe because of the conflict in the Gulf region.
The New York Times, in a piece headlined “Europe Is Done With Appeasing Trump”, lays out several of Europe’s current pains.
“The barrage of tariffs that opened the second Trump administration, aimed indiscriminately at friend and foe; the brazen demands that Denmark cede Greenland to the United States, and now the absence of any consultation with European allies before joining Israel in an attack on Iran that has affected the entire world, have erased any illusion among most Europeans that Mr. Trump is anything but an unpredictable, vindictive and uncontrollable danger,” it wrote.
Trump’s latest move is to impose a blockade on all Iranian ports from Monday, adding another barrier in the Strait of Hormuz. The U.S. president has repeatedly said, with obvious satisfaction, that America has oil and natural gas, and that oil shipping blockage cannot bring the United States to its knees. In other words, if Iran wants a war of attrition, the White House is ready to go all the way. America’s NATO allies, meanwhile, make clear they will “decline to join in.” Europe’s oil supply is already under pressure: Russian oil and gas are cut off, and Middle Eastern shipping now faces a second lock. So is Trump punishing Iran, or Europe?
“Last year, export controls imposed by Beijing on seven rare earth elements and the magnets made from them had especially severe consequences. China is a global leader in the production of these critical raw materials, which are widely used in electric motors, smartphones, and numerous everyday electronic devices,” Deutsche Welle reported. “The EU Chamber of Commerce said nearly one-third of its member companies indicated in a questionnaire survey at the beginning of this year that their business had been affected by China’s export control measures.”
The EU Chamber of Commerce knows perfectly well that China-EU relations have been pulled off course by the United States, and that Europe has not shaped its foreign and trade policy around its own interests. It has even had to tear out 5G networks built by Huawei and ZTE, while Chinese electric vehicles face restrictions. That has only made China-EU ties more tangled. Europe can hardly be called arrogant now. Energy supplies are unstable, and rare earth constraints have turned it into an industrial power with nothing usable to work with. So what now?
Although calls to “de-risk” economic ties with China have persisted for years, many European companies continue to bet on the Chinese market. Over the past year, EU figures show that 26% of companies said they were relocating their supply chains to China, “a proportion twice that of companies choosing to move their supply chains out of China or establish a second hub overseas.” The trend is clearly still going strong.
Europe’s major powers, including France, Italy and Germany, all feel the need to break free from the manipulation and humiliation imposed by the United States, especially the Trump team. Europe has finally woken up and is now pushing for independence and autonomy, placing its national destiny firmly in its own hands.
Nothing in the world is difficult if you are willing to scale the heights. Europe becoming strong again is no dream, but starting over takes patience. I would say 300 years is enough for you to turn things around.
