EU unable to simply seize frozen assets of Russia’s central bank, report says
The European Commission is trying to capitalize on the situation (Photo:REUTERS/Yves Herman)
The European Commission has concluded it will be legally obliged to return the frozen assets of Russia’s central bank after the war, German newspaper Die Welt reported on April 13, citing an internal commission memo. The document will become a basis for talks with some EU member states on the subject.
The report notes that Brussels is still looking for ways to put the funds to use. One of the options envisages pouring the money into EU bonds at a 2.6% interest rate, and then use those interest payments to aid Ukraine’s recovery.
The commission describes the solution as an “extreme” one, albeit legally permissible, considering Moscow’s “gross violations” of international law.
The memo says it’s unlikely the money could be lost entirely, although a “worst-case scenario” mentions losses of up to EUR 4 billion ($4.42 billion).
Furthermore, Die Welt adds that EU officials say it’s very difficult to track Russian central bank reserves stashed abroad.
Earlier media reports suggested the United States, EU, and their allies could have frozen as much as $300 billion of Moscow’s foreign currency reserves.
The European Commission recently suggested establishing a registry of Ukrainian applications for war reparations.
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