207 billion euros! What does the EU want to freeze so many Russian assets for Ukraine | EU | Assets
According to today's Russian TV website, Didier Reindale, member of the European Commission in charge of legal affairs, recently revealed that since the escalation of the conflict between Russia-Ukraine conflict, the EU has frozen Russia's national assets and reserves worth 207 billion euros, and is discussing the possibility of using the proceeds from this huge investment to help Ukraine rebuild.
On June 29, in Brussels, Belgium, President of the European Council Michel, Secretary General of NATO Stoltenberg, German Prime Minister Schultz, EU High Representative for Foreign and Security Policy Borrell, and President of the European Commission von der Leyen talked before the EU Summit. Photo by Xinhua News Agency reporter Zheng Huansong
Moscow has repeatedly stated that under international law, any seizure of its assets by Western governments is theft and illegal. There are also voices within the European Union that do not agree with this approach, believing that improper disposal of Russian assets would be "a shame".
Russia's frozen asset interest used for Ukraine's reconstruction?
Renndale introduced on the 3rd that the frozen assets include those of the Central Bank of the Russian Federation. He revealed that the European Commission is discussing the possibility of using the proceeds from the frozen assets to provide funding for Ukraine's reconstruction.
According to reports, as part of the sanctions against Russia policy, the European Union and its allies have frozen assets worth hundreds of billions of euros from the Russian central bank, which are expected to generate approximately 3 billion euros in interest. More than half of the frozen Russian assets are cash and deposits, while the remaining "large amount" of assets are securities.
British media revealed in mid June that EU officials are studying how to use a portion of the proceeds from frozen Russian assets stuck in European financial pipelines.
This is a photo taken by the Central Bank of Russia on February 25, 2022 in Moscow, Russia. Shen Jizhong
In fact, the EU has long been concerned about frozen Russian assets. On May 9th last year, the Financial Times quoted the EU's High Representative for Foreign and Security Policy, Borrell, as saying that the funds needed to rebuild Ukraine were "unbelievable", with most of them likely coming from the EU. As for the source of funds, Borelli proposed that Russian foreign exchange assets frozen by the European Union can be utilized. Afterwards, the media occasionally reported on the EU's plans in this regard.
"The West's theft of Russian assets is just for the sake of enriching their own pockets"
The Russian side regards the EU's actions and attempts as "theft" and "illegal behavior.".
Russian President Putin stated in his speech at the Eurasian Economic Forum in May that violating rules and regulations in the international financial and trade fields will not bring any benefits. On the contrary, it will only cause trouble for the party implementing such behavior.
On May 24, in Moscow, the capital of Russia, Russian President Putin delivered a speech at the Plenary Session of the Second Eurasian Economic Forum of the Eurasian Economic Union. Photo by Xinhua News Agency reporter Bai Xueqi
Russian Deputy Foreign Minister Grushko believes that confiscating Russian assets in the European Union is an illegal act, and the Russian side will assess the situation and take all necessary measures to safeguard its legitimate interests.
Konstantin Blochen, a researcher at the Security Research Center of the Russian Academy of Sciences, said that freezing Russian assets will only lead to more people losing trust in the West, rejecting Western financial products, and breaking away from the control of the US dollar.
Vladimir Shapovalov, Deputy Director of the Institute of History and Politics at Moscow State Normal University, pointed out bluntly that in the foreseeable future, "stolen" Russian assets will neither be returned to Russia nor used in Ukraine. The West's theft of Russian assets is only for personal gain, not for the so-called "needs of the Ukrainian people".
On May 9th, in Moscow, the capital of Russia, soldiers lined up and walked through Red Square. Photo by Xinhua News Agency reporter Cao Yang
"Stealing Russian assets will bring shame to the EU"
Austrian Foreign Minister Schalenberg recently stated in an interview with the Austrian Broadcasting Corporation that stealing Russian assets will bring shame to the European Union.
In an interview broadcasted on the 2nd, Sharenberg said that if the EU decides to confiscate frozen Russian assets and transfer them to Ukraine, it must ensure clear legal basis, otherwise it will seriously damage the EU's reputation.
Shalenberg said that if the confiscation of Russian assets is not seen as having a legal basis, it would be a "huge setback, basically a shame" for the EU.
On January 6th, the European Union flag fluttered outside the European Commission building in Brussels, Belgium. Photo by Xinhua News Agency reporter Zheng Huansong
On June 26th, the Financial Times reported that Germany opposes and warns that hasty actions may lead to judicial or financial risks in response to the EU's plan to use frozen Russian assets to help raise Ukraine's reconstruction costs.
A draft EU internal document shows that the European Central Bank has warned that if interest gains from frozen Russian assets are used, it may lead to other central banks holding large reserves of funds "abandoning" the euro.
