₦airaland Forum

The European Commission is working on a mechanism that would allow nearly €200 billion in frozen Russian assets to be transferred into a special fund and directed toward Ukraine’s reconstruction after the war.

Details: The media outlet Politico writes that Brussels is testing the readiness of national governments to transfer the assets into higher-risk investments that could generate greater returns for Ukraine while increasing pressure on Russia, which continues to refuse to end its aggression.

Proponents also see the scheme as a step towards potential confiscation of Russian assets and their transfer to Ukraine as punishment for Moscow’s refusal to pay postwar reparations.

The plan, however, does not provide for immediate confiscation, which most EU countries oppose for financial and legal reasons.

On Saturday, the issue will be discussed for the first time by the foreign ministers of the EU’s 27 member states during an informal meeting in Copenhagen. A preparatory note reviewed by Politico mentions "further options for the use of revenues stemming from Russian immobilised sovereign assets".

"We hear that it’s more difficult to raise money [from national finances or the EU budget]. [But] we have those assets there and the logical question is how can we and why don’t we use those assets," Kerli Veski, Undersecretary for Legal and Consular Affairs at the Estonian Ministry of Foreign Affairs, told Politico.

Within the European Commission, the idea is being pushed by Economy Commissioner Valdis Dombrovskis and foreign policy chief Kaja Kallas.

The Baltic states and some other EU members have long demanded the outright confiscation of all Russian funds, but most countries — notably Germany, Italy and Belgium — remain opposed. Belgium is especially vulnerable to legal and financial risks, as Euroclear, the financial institution holding most of the Russian assets, is located there.

As a workaround, Brussels is considering creating a special fund modelled on the European Stability Mechanism (ESM). Such a fund for Ukraine could also be opened to G7 countries, including the UK and Canada, both of which advocate confiscation. This mechanism would allow frozen assets to be invested in riskier, higher-yielding instruments, thereby generating additional resources for Ukraine, Politico notes.

Proponents also see the scheme as a step towards potential confiscation of Russian assets and their transfer to Ukraine as punishment for Moscow’s refusal to pay postwar reparations.

The plan, however, does not provide for immediate confiscation, which most EU countries oppose for financial and legal reasons.

On Saturday, the issue will be discussed for the first time by the foreign ministers of the EU’s 27 member states during an informal meeting in Copenhagen. A preparatory note reviewed by Politico mentions "further options for the use of revenues stemming from Russian immobilised sovereign assets".

"We hear that it’s more difficult to raise money [from national finances or the EU budget]. [But] we have those assets there and the logical question is how can we and why don’t we use those assets," Kerli Veski, Undersecretary for Legal and Consular Affairs at the Estonian Ministry of Foreign Affairs, told Politico.

Within the European Commission, the idea is being pushed by Economy Commissioner Valdis Dombrovskis and foreign policy chief Kaja Kallas.

The Baltic states and some other EU members have long demanded the outright confiscation of all Russian funds, but most countries — notably Germany, Italy and Belgium — remain opposed. Belgium is especially vulnerable to legal and financial risks, as Euroclear, the financial institution holding most of the Russian assets, is located there.

As a workaround, Brussels is considering creating a special fund modelled on the European Stability Mechanism (ESM). Such a fund for Ukraine could also be opened to G7 countries, including the UK and Canada, both of which advocate confiscation. This mechanism would allow frozen assets to be invested in riskier, higher-yielding instruments, thereby generating additional resources for Ukraine, Politico notes.

papiwyte:
Israel fund should be frozen too for Gaza rebuilding

mikeapollo:
Did Israel attack anybody on Oct 7, 2023?
The was did not start with Israel attacking anyone.

CoronaVirusPro:
EU still not wise. I think they are the most foolish continent as it stands today.

They seems not to know that they are pawns in the game.

When I saw the smile on Xi, Putin and Modi at the recent meeting, I knew they had perfected their art and sure about it.

Trump is on Putin’s side. The Portuguese president said it out. Instead of EU going on the peace route and mending fences, they are still doing the “strong head” thingy

You not buying crude from Russia but will still buy SAME Russian oil from India. Are these lots really serious!

Kaiser20:
The European Union IS waiting for Russia to finish destroying Ukraine for them to share the cost of rebuilding, thieves

papiwyte:
Israel fund should be frozen too for Gaza rebuilding

casualobserver:
They are a most useless continent. They have lost economically to America and China and are dependent on immigrants for survival.

CoronaVirusPro:
…..and they still cannot see it. I am still wondering what their game plan is at this point.

The earlier they make themselves the priority, the better. They are alone as it stands and I see nothing good coming out of they don’t go the peace route.

All this funds confiscation is chest beating.

RollinTNDA:
Imagine all Israeli billionaires assets and billions of dollars in all Europe banks were seized and used to rebuild Gaze

Israel will bomb all European capitals

But seriously Russia deserve this...
This won't affect Putin at all.
But his loyal oligarchs will be gnashing their teeth in anger as their billions are being seized in Europe.

No wonder many oligarchs are falling out of windows and commiting suicide