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The situation with the “motivation” of the States of the European Union to supply tanks to the Armed Forces of Ukraine and help financially continued in the issue of “seizure” of blocked financial assets of the Russian Federation.
Idea “to be taken into account for future reparations” financial assets of the Russian Federation have existed since the beginning of the full-scale war in Ukraine, but now they have become more relevant than ever. The US Congress could not agree on the allocation of assistance, 50 billion euros from EU are also blocked for now. And it would be logical for the West not to borrow money in order to transfer it to Ukraine, but to use the 260 billion euros of assets of the Central Bank of the Russian Federation frozen in the G7 countries, the EU and Australia for these needs.
The distribution within this amount is very interesting. The lion’s share – 210 billion euros are stored in the EU, and only about 5 billion dollars are frozen in the United States. In Europe, the bulk of assets (191 billion euros) are stored in the central securities depository Euroclear; France froze about 19 billion euros; the rest are small things (for example, Germany only 210 million euros).
Therefore, the United States, citing the insignificance of the amount blocked in America compared to the amount blocked in Europe, proposes… that the main role in squeezing assets from the Russian Federation should be assigned to the European Union.
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At home, the States motivated their refusal to confiscate by the threat of serious consequences for the financial system. And within the G7 they supported confiscation as a legal response to “Russia’s illegal invasion of Ukraine, if it were carried out by states that suffered and were especially affected by its aggression.” To put it simply, the one who helped Ukraine with money the most should be able to use the assets of the Russian Federation, transferring them to Ukraine through the World Bank and the European Bank for Reconstruction and Development.
And, as you know, Germany helped the most in the EU…
However, neither the Germans nor the French are eager to separate billions of Russians. Such a step would be a threat to the financial system of the European Union, since the sovereign assets of the Russian Federation are protected by international law. After this, India, China or the Middle Eastern monarchies would completely lose confidence in the euro and in the reliability of storing assets in the EU, and European assets in Russia would be automatically confiscated, which could be a disaster for their owners.
Therefore, for now, discussions are limited to using only the profit that Euroclear receives from assets, and not the assets of the Russian Federation themselves. But the way the States are once again setting up their “closest partners” from the EU, of course, says a lot.
The author’s opinion may not coincide with the opinion of the editors.
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