Ukraine - funding challenges

The past few days have thrown a spotlight on the difficulties for the West in continuing to fund Ukraine through the war to ensure its victory but also its eventual reconstruction.

Remarkable really to see the dysfunction now in the US Congress where despite, seemingly, strong bipartisan support still for Ukraine, the own government shutdown crisis has really jeopardised continued support for Ukraine.

Meanwhile, notable in response I think, the EU seems to have rolled over its rule of law concerns against the Orban regime in Hungary to ensure its own budget support for Ukraine. Rule of law issues therein seem to have been sacrificed for the greater good of continuing to fund Ukraine, and against a backdrop of growing concern that the US might be forced to take a step back in its support for Ukraine.

It’s still remarkable here to have to explain that the costs to the West of a Russian victory in Ukraine will be much higher than the costs now of ensuring Ukraine’s victory over the Russian aggressor. See the many articles I have written on this substack portal previously in this regard, particularly the CEPA.org piece about Western support for Ukraine costing peanuts in the bigger scheme of things.

I get the fact that Western tax payers are tired now of spending tens of billions, if not hundreds, of billions of dollars on helping Ukraine in its defence, and likely more on its eventual reconstruction. But it is still incomprehensible to me why Western tax payers are being made to foot the bill for Russian actions when we have around $400bn in frozen Russian assets in Western jurisdictions which can be used for funding Ukraine’s defence and its eventual reconstruction. Again I have written lots on this subject, see the link below.

Arguments against using frozen Russian assets are based on weak excuses around rule of law, the dollars position as a reserve currency and sovereign immunity. Our politicians better ask themselves what happens to all those higher “principles” if Western tax papers won’t pay for Ukraine’s victory and reconstruction and Russia wins? Indeed, rule of law concerns around Hungary have already been quietly jettisoned.

I am just amazed that our politicians are not focusing more on doing whatever it takes to use frozen Russia assets for Ukraine, rather than tapping Western taxpayers. Indeed, I think it should be scandal that our politicians prefer to use Western taxpayers money to support Ukraine while protecting frozen Russian assets almost at all costs. The property rights of the aggressor appear to be more valuable than the victim, and indeed those of tax payers or voters in Western states backing Ukraine.

Laws need to be changed, if need be, but fast to ensure the $400bn in frozen (actually mostly only immobilised) Russian assets are used to help Ukraine win this war, and the peace. If not Ukraine will lose, and Western Liberal Market Democracy will face its biggest threat since WW2. Our politicians need to wake up and smell the roses.