EU "closes deal" to use profits from frozen Russian assets?

Ambassadors of European Union (EU) member states have given preliminary approval to the European Commission's (EC) proposal to use profits from frozen assets of the Russian Central Bank to rebuild Ukraine.

EU 'chốt kèo' sử dụng lợi nhuận thu được từ tài sản bị phong tỏa của Nga?

EU agrees on preliminary deal to use frozen assets of Russian Central Bank. (Source: Reuters)

The above information was published by Reuters citing a source from Belgium - the country holding the EU presidency - on January 29.

This is seen as the first step in Russia's plan to use frozen assets in its efforts to rebuild Ukraine - which has been affected by a special military campaign that has lasted nearly two years.

Ambassadors from 27 EU countries have agreed in principle to use profits from Russian assets to support the reconstruction of the conflict-torn Eastern European country, sources said.

The document will undergo legal and linguistic checks before countries adopt it, the source said, adding that this will happen as soon as possible. The EC is then expected to propose transferring the money to Kiev, but the exact date has not been set.

Previously, Italy, Germany and France expressed skepticism about moves related to Russian assets.

The countries said that using frozen assets could cause investors from other countries to doubt the safety of their EU holdings and move to withdraw their investments from Europe, which would weaken the euro in the long term.

"The euro should not be used as a tool in sanctions and political disputes, because it would damage the image and position of this currency," stressed Bank of Italy Governor Fabio Panetta.

* On the Russian side, in mid-January 2024, Foreign Ministry spokeswoman Maria Zakharova accused the West of trying to create a "legal cover" to take away Moscow's sovereign assets - a move that the country has repeatedly warned would violate international law and weaken the global financial system.

Accusing Washington of trying to pressure the EU into joining a plan to seize Russian assets, Ms Zakharova warned: "Moscow will respond decisively if the country's assets are 'stolen'. Retaliatory measures will be taken. They will be painful!"

Meanwhile, Kremlin spokesman Dmitry Peskov said that Russia has prepared a list of Western assets that could be confiscated if the Group of Seven (G7) decides to confiscate Moscow's frozen assets.

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