Bloomberg: EU again checks possibility of seizing some of Russia’s frozen assets
Pravda Ukraine
The European Union is studying additional ways to use Russian assets frozen on its territory, including their seizure, to compensate Ukraine for damages.
Source: Bloomberg, as reported by European Pravda
Details: Bloomberg’s interlocutors report that EU officials are discussing various ways to use Russian assets within the framework of the International Claims Commission.
This is a mechanism to be created under the auspices of the Council of Europe to compensate Ukrainians for losses from Russian aggression; Ukraine had predicted its launch in 2025.
Bloomberg sources say that the EU is discussing a theoretical option of confiscating Russia’s frozen assets if it refuses to pay damages.
The sources said Russia’s obligations to compensate for damages in a potential peace agreement would offset the value of the confiscated assets.
Another option being discussed in the European Union is that member states would be empowered to confiscate Russia’s assets to compensate for the destruction of Ukraine’s energy infrastructure.
In this context, EU officials are investigating whether such confiscation is possible, for example, based on a decision of the International Criminal Court and whether it complies with the criminal laws of EU member states.
Bloomberg reports that some member states, including Germany and France, rejected the option of full confiscation of Russian assets because of the legal and economic consequences of such a step.
The EU, the Group of Seven countries, and Australia have frozen about US$280 bn of the Russian central bank’s securities and cash assets, mainly through the Belgium-based clearing house Euroclear.
Sanctions imposed on Russian nationals have resulted in an additional US$58 bn in assets being frozen.
Background: Reuters report that Russia may agree to use US$300 bn of its frozen assets in Europe to rebuild Ukraine but will insist that part of the money be used to rebuild the territories it currently controls (about 20% of Ukraine).
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