EU Seeks Ways to Seize Part of Russia’s Frozen $280 Billion

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(Bloomberg) – The European Union explores more powerful ways to seize the frozen central bank’s assets in Russia, where the bloc is defending to ensure financial and military support for Ukraine amid indicators of the United States that may help it.

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European Union officials discuss how assets can be used as a guarantee by the planned international claims committee, which will determine the compensation due to Ukraine, according to persons familiar with the talks. It can then seize assets if Moscow refuses to pay damage.

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People, who spoke on the condition of anonymity, said that the value of the confiscated assets will be matched by Russia's obligations to pay the costs of damage to a possible peace agreement.

US President Donald Trump has shifted sharply against President Voludimir Zellinski in recent days, describing him as an inaccurate dictator and blame for Ukraine for the invasion of Russia. Zelenskiy urged European leaders to intensify his country with threats that the United States, which was one of the senior arms and financial aid suppliers in Kiev, would reduce its participation.

The European Union, the group consisting of seven countries and Australia, freezed about $ 280 billion of Russia's central bank assets in the form of securities and cash, most of which are through the clearing house in Belgium. The penalties imposed on prominent Russian individuals froze an estimated $ 58 billion of assets, including homes, yachts and private planes, according to US Treasury estimates.

European UNHCR, the European Union's executive arm, did not respond immediately to request a comment.

The heads of economics and financial services of the European Union, Valdes Dumpervskis and Maria Lewis, said that the bloc should explore every possible option to help Ukraine, including the confiscation of the assets of the Russian Central Bank.

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Another option is to be discussed that the European Union requires member states to confiscate sovereign assets to compensate for the destruction of energy infrastructure in Ukraine, according to the people. They are looking for whether the ruling in this regard by the International Criminal Court and the brutality of the attacks would justify the procedure under the criminal laws of member states.

Suggestions have been opposed to seizing the entire assets by member states, including Germany and France, due to the legal and economic consequences that may lead to how such a dramatic measure affects the international role of the euro.

The diplomatic service of the European Union and some member states has studied whether judicial decisions are needed as a legal basis to seize frozen assets, or if the damage account is sufficient, according to Bloomberg earlier. The European Central Bank also expressed their concerns about the idea.

Suggestions are held, the G-7 has already used profits from Russian assets installed to support a $ 50 billion loan to Ukraine.

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The people said that the European negotiations, the executive arm of the bloc, informed the ambassadors of the European Union this week that negotiations to establish the International Claims Committee will start on March 24. He added that the new organization will be discussed during a meeting of foreign ministers on Monday.

The job of the new committee is to evaluate the claims of damage and estimate an accurate amount that must be paid.

“There can be no justice without compensation,” said European Commission President Ursula von der Lin this month.

She said, “Russia must be responsible for its aggression – and it should pay,” she said.

– With the help of Alberto Nardi and Andrea Palaskano.

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