The renowned American economist Joseph Stiglitz, Nobel laureate in economics, believes that the only way European leaders can truly support Ukraine, after Donald Trump seems to have washed his hands of the country at war, is by confiscating the frozen assets of the Russians held in jurisdictions across the continent.
This amounts to no less than 220 billion dollars that can become a real weapon against Putin, Stiglitz argues, who publishes a comprehensive analysis on this topic in The Guardian.
Trump himself is either a victim of misinformation or a willing participant in an effort to mislead Americans about the causes and consequences of the war, says Stiglitz.
Trump's lies include claims such as Ukraine being equally to blame for the war, Volodymyr Zelensky not having the "cards" necessary to end the conflict on favorable terms, and Ukraine not being able to defend itself without US assistance. However, the whole world knows that Russia launched an unprovoked invasion, and we all remember the first weeks of the war when Ukrainians heroically defended a 1,800-mile front against a supposedly superior army long before Western artillery, armored vehicles, and air defense systems arrived on the front, writes the renowned economist.
He also recalls the "shameful scene" in the Oval Office on February 28, which, he says, highlighted Trump's hostility towards Zelensky and his admiration for Vladimir Putin: "Is it just a simple attraction to authoritarian leaders who fulfill his own ambitions? Or does Putin have 'kompromat' (compromising material - ed.) on Trump, as suspected during his first term?"
Regardless of the reason, Trump rejects the idea of the rule of law, subordinating it to political interests: the law must be used when it serves the president's interests and ignored when it doesn't, the analyst further states.
Three decades ago, the United States, together with the United Kingdom and Russia, promised to defend Ukraine's territorial integrity in accordance with the Budapest Memorandum signed in December 1994. In return, Ukraine agreed to give up the third-largest nuclear arsenal in the world inherited from the Soviet Union. Russia violated the agreement when it illegally invaded and annexed Crimea in 2014, and now Ukraine has been betrayed by two of the signatory parties to the agreement.
Trump's refusal to honor America's word is shameful. Ukrainians upheld their end of the bargain and expected the US to do the same. These betrayals have deadly implications, not just for Ukraine. For decades, Europe's security has relied on Article 5 of the NATO treaty, which considers an attack on one member as an attack on all. However, it is now evident that the US will only defend Europe if it serves Trump's personal interests. For him, international law and treaty obligations mean nothing - just as they mean nothing to Putin, the American analyst believes.
Justice and common sense dictate
Europeans are now facing these harsh realities. The most urgent tasks are to create a self-sufficient defense force and decide on the 220 billion dollars from Russian sovereign assets (out of a total of 300-350 billion frozen in 2022) held in European jurisdictions. In June 2024, the G7 agreed to use the interest (50 billion dollars) generated by these assets to provide financial aid to Ukraine, and the European Commission made the first tranche of 3 billion dollars in January. However, considering that the US is likely to halt its own financial support, this compromise measure is no longer sufficient. Europe must go further and confiscate all Russian assets under its control.
Stiglitz points out that while in the past he believed these assets should be used for Ukraine's reconstruction, as the damages caused by Russian aggression far exceed 220 billion dollars, he now considers these funds even more urgently needed.
You cannot rebuild a country that is still under attack and partial occupation. Justice and common sense dictate that these resources should be used to finance Ukraine's defense. Europe can employ any legal maneuvers necessary; what matters is that Ukraine promptly receives the money so it can purchase military equipment and repair the infrastructure constantly destroyed by Russia.
There can be no doubt about accountability. Russia should not be allowed to claim that its assets are legally protected while it destroys the rule of law and freely confiscates Western assets on its territory. Furthermore, the immediate availability of these funds to Ukraine would be in Europe's interest. Any amount spent by Ukraine on its defense industry will ultimately contribute to strengthening Europe's defense capabilities and boosting its weakened economy.
There is no time to waste. Using these funds as collateral for a future international claims commission, as proposed, would lead to unacceptable delays. Authoritarianism is on the rise, and Europe has become the global bastion against it. European values - and the defense of civil liberties, democracy, and human rights worldwide - are at stake.
As Emmanuel Macron recently said: "Europe must rediscover a taste for risk, ambition, and power." If he and other European leaders want to demonstrate their support for Ukraine after the Oval Office fiasco, they must seize this moment - which means confiscating Russian assets. Ukraine defends the whole of Europe. Europe must not hide behind legal excuses, Stiglitz concludes.