Ukraine - debt relief AFTER Russia pays

Interesting to see the G7 statement last week noting the extension of the debt service suspension and effectively backing the IMF call for further debt treatment on private sector debts when the current standstill ends in August.

I would argue that G7 governments should first ensure that frozen Russian assets are allocated to Ukraine before any future debt treatment is agreed. They have that moral responsibility to Ukraine, to their own taxpayers and also to the Western pensioners who will ultimately be asked to provide debt relief to Ukraine. Debt relief for Ukraine - yes, but only after Russia is made to pay first.

Actually by first pushing debt relief this works against efforts to ensure Russia pays for the damage done to Ukraine - it wrongly sends a message that a combination of Western taxpayer dollars and debt relief from Western creditors can fill Ukraine’s financing needs - it absolutely cannot given the harsh political reality we are seeing play out in the US Congress over the stalled $61bn. Western taxpayers and pensioners should not pay before Russia is made to pay first.

Our governments are very good at spending other peoples money (taxpayers) but the irony is there seems to be a lobby trying to ensure that Russian assets are protected above all others and despite its heinous actions in Ukraine - Russian property rights are somehow being made senior to those of Western taxpayers and pensioners. How is that morally right, fair or even politically possible for Western governments to try and sustain.

First seize Russian assets and allocate to Ukraine, then provide debt relief. That should be the order of things.

https://www.gov.uk/government/publications/group-of-creditors-to-ukraine-statement-on-extending-the-debt-deferral-for-ukraine/group-of-creditors-of-ukraine-statement