Euro banknotes. Photo by Robin Utrecht/Scanpix/LETA
Leading European states are considering the seizure of more than €200 billion in Russian assets as a lever of influence on the Kremlin in the upcoming negotiations to end the war.
This was reported by the Financial Times, citing its own sources.
According to the publication, France and Germany are negotiating with the UK to use frozen Russian funds to provide Ukraine with security guarantees under a future peace agreement. In particular, France proposes to seize these assets if Russia tries to violate a potential truce.
Where are the frozen Russian assets kept?
After the start of the full-scale invasion of Ukraine, the G7 countries froze approximately €300 billion of the Central Bank of Russia’s assets. The largest portion – €190 billion – is held in the Belgian depository Euroclear. Other funds are kept in: France, the United Kingdom, Japan, Switzerland, and the United States.
Currently, the profits from these assets are used to repay $50 billion in loans to Ukraine, but the funds themselves remain untouched.
Why didn’t Europe seize assets earlier?
Despite calls from Ukraine, Poland and the Baltic states to confiscate Russian funds, Berlin, Paris and Brussels have previously opposed it. The main arguments
- This could set a dangerous precedent in international law.
- The European Central Bank fears that this will undermine the euro’s status as a reliable currency.
However, Europe’s position has changed after Donald Trump threatened to cut off military support for Ukraine if he returns to the White House.
What do world leaders say?
French President Emmanuel Macron has said that the immediate seizure of assets is contrary to international law, but they can be part of peace talks.
The future German Chancellor Friedrich Merz is ready to support the proposal, and British Prime Minister Keir Starmer has acknowledged the possibility of using Russian assets, although he called it a “complicated issue”.
The French initiative has received a positive response from European allies, but the decision is still being negotiated.
