France says no, Europe hesitates, money still "out of reach"

To date, Europe has not used the $300 billion in Russian Central Bank assets frozen on the continent to aid Ukraine. What is the reason?

Belgium, which holds most of the frozen Russian assets, remains skeptical about the idea of ​​confiscation. (Source: CNBC)

There are two major issues that make European countries hesitant to seize frozen Russian assets: economic and legal.

“We will not touch frozen Russian assets,” French government spokeswoman Sophie Primas stressed.

Doing so could set a dangerous precedent, making foreign investors wary of investing in Europe, she warned.

However, the French government is considering legal avenues to use the money.

In recent years, European central banks have expressed concerns that seizing foreign assets could “undermine the euro’s role as a reserve currency”.

However, continued aid to Ukraine would still cost Europe a lot of money, and interest on frozen Russian assets is not enough.

Legally, Europe's hesitation to seize Russian assets rather than simply freeze them stems from one of the main principles of international law, which is the immunity of a state's assets abroad from confiscation.

Any action by the European Union (EU) would almost certainly require the consensus of all member states.

This is unlikely to happen as long as Hungary and Slovakia remain pro-Russian, while Belgium, which holds most of the frozen Russian assets, remains skeptical about the idea of ​​confiscation.

US officials under President Joe Biden had hoped to use frozen Moscow assets as leverage in peace talks, forcing Moscow to the negotiating table.

With a positive view of Russia and the first steps of the Donald Trump administration towards a Russia-Ukraine peace deal after more than three years of conflict and European seizure of Russian assets, it is likely to hinder rather than promote negotiations.

Therefore, the frozen assets of President Putin's country are probably "out of reach" for Europe at present.

Source: https://baoquocte.vn/tai-san-nga-bi-phong-toa-phap-noi-khong-dung-vao-ly-do-chau-au-do-du-tien-van-ngoai-tam-voi-308691.html