Since the start of the special military operation in Ukraine, the European Union (EU) has frozen €210 billion in assets of the Russian Central Bank. Recently, Polish Prime Minister Donald Tusk called on the 27-member bloc to seize these assets to finance future financial assistance to Ukraine.
 |
| The EU has frozen €210 billion of assets of the Russian Central Bank. (Source: FT) |
With Russia's assets frozen, the EU has so far used only interest to provide financial and military support to Kiev.
Donald Tusk posted on X: "Enough talk, time for action. Aid Ukraine from frozen Russian assets."
The Polish prime minister's bold idea comes amid growing concerns that US President Donald Trump could soon cut off all aid to Ukraine, leaving the country vulnerable to Russia's special military campaign.
As the United States rapidly moves away from the Atlantic alliance, the 27-member bloc is considering creative ways to dramatically increase defense spending and take on the enormous responsibility for financial, military and humanitarian assistance that President Volodymyr Zelensky’s country needs.
However, Europe is short of cash and economic growth is stagnant.
This leaves the region with few options for new revenue sources. The seizure of €210 billion in frozen Russian assets could – in theory – fill the gap in the near future.
However, the proposal faces many obstacles. Legally, the money is considered sovereign property of Russia and protected by international law, making the move a risky one.
Politically, the Polish Prime Minister’s plan would require the support of all EU members. Hungary, which has been a staunch opponent of EU sanctions, is unlikely to support it. Germany has also expressed reservations about the precedent of this unprecedented decision.
Currently, the bulk of the frozen Russian assets are held at Euroclear, a Brussels-based financial institution that plays a key role in securities trading and custody. Euroclear CEO Valerie Urbain warned that the seizure of assets could trigger retaliatory measures from Moscow, further destabilizing EU financial markets.
She stressed that if the EU decides to seize these assets, the bloc needs to ensure the transfer of not only the assets but also the associated liabilities, in order to protect financial institutions from potential claims from Russia.
In addition, using Russian assets or profits from them to finance Ukraine could affect the euro's status as a global reserve currency and have a negative impact on the EU's financial stability.
On Moscow's side, the Kremlin has repeatedly voiced its opposition, calling this an "act of theft." Spokesman Dmitry Peskov warned that Russia would take legal measures against any individuals or organizations involved in this confiscation.
Source: https://baoquocte.vn/tai-san-nga-bi-dong-bang-bi-noi-da-den-luc-hanh-dong-de-xuat-tao-bao-duc-hungary-de-dat-305076.html
Comment (0)