The seizure of Russian assets is extremely complex and potentially dangerous from a legal perspective. Discussions on this issue are now at an early stage.
The European Union is currently considering using billions of euros worth of Russian Central Bank assets already frozen by member countries to help rebuild Ukraine. On Thursday, November 3, according to Bloomberg, the sources were cited.
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According to the publication, discussions are at an early stage, and legal experts have recently been commissioned to consider the options. Assessing whether and how to control assets is extremely complex and potentially dangerous from a legal perspective.
But as Russia’s invasion of Ukraine enters its ninth month, and sanctions have not deterred President Vladimir Putin, even as they hurt his economy, the European Commission is looking for ways to permanently cut his access to those funds.
The options will focus on how to eventually recover some of the nearly $300 billion in central bank reserves frozen by the EU, US and other allies following Russia’s invasion of Ukraine.
It noted that any EU action would focus on assets located in Europe. At the same time, it is not clear which assets have been frozen in the EU.
US Treasury Secretary Janet Yellen has previously said she believes such a move “is not something that is legally permissible in the United States” but “is only natural given the massive destruction in Ukraine and the enormous reconstruction costs they will face , we hope that Russia will help pay at least part of the price associated with it.
The Treasury Department then expressed concern about setting a precedent that would prevent other countries from placing their central bank assets in the US.
European Commissioner for Justice Didier Reynders said the frozen reserves could be kept as a guarantee until Russia willingly takes part in the reconstruction of Ukraine.
Earlier, the Foreign Ministry explained that it is problematic for Europe to confiscate the assets of the Russian Federation for Ukraine due to the lack of legal basis for such actions.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.