The topic of the confiscation of Russian assets was widely discussed during the last meeting of EU foreign ministers in Copenhagen. Several EU Member States, including the Baltic States, argue to take over these assets, which argue that this would allow funding for European support for Ukraine without incurring costs by European taxpayers. The main brakes of these solutions are, among others European Central Bank, Germany, France or Belgium.
It is Belgium, specifically the Belgian Euroclear institution, which stores and settles state bonds and other securities is in possession of the largest “cake” of Russian assets. The International NGO International Crisis Group estimates that less than that EUR 200 billion Russian assets. Formally, Russia remains the owner of this money, but it cannot move it – neither sell or use.
The Belgian Foreign Minister Maxime Prévot recently warned that The confiscation of these funds could be caused by “terrible system shock” in the entire European economy. According to him, a political decision, instead of a court, could not only shake the European financial market, but also weaken the position of the euro as a reserve currency.
– Will other investors who invested billions in European markets would not withdraw their money, asking: “If you can confiscate assets so easily tomorrow … I will move them somewhere else?” Asked Prévot.
In addition to Belgium, other countries that “frozen” Russian assets are, among others Japan (approx. 30 billion euros)France (EUR 21 billion)Switzerland (EUR 8 billion)United States (EUR 4 billion) And Germany (EUR 210 million).
Great Britain, Canada and Australia report jointly state and private assets, which further hinders the exact summary. According to data, London froze in total EUR 34 billion, Ottawa – EUR 288 millionand Canberra – EUR 56 million.
In addition to state funds, the West also froze Over EUR 70 billion of private property – yachts, property and banking accounts of oligarchs. However, unlike state assets, the confiscation of this property encounters serious legal obstacles: it is possible only if it proves that it comes from a crime or was used to celebrate sanctions.
What next with Russian billions?
Today, the most important debate is about the question: Should frozen Russian assets be taken over and used for Ukraine?
Supporters – including the government in Kiev, some lawyers and politicians from the West argue that yes. They claim that the bill for war and destruction of Ukraine should be issued to the Kremlin. According to the estimates of Kiev, the World Bank, the European Commission and the UN, the costs of rebuilding the country can be even above EUR 500 billion. President Wołodymyr Zelnski goes even further and gives the amount above EUR 700 billion.
Critics, in turn, warn that such action could violateshake EU tax bond market and undermine the position of the euro as a reserve currency.
So far, EU Member States have agreed transfer only income from investments from frozen assets. Last year, the profit from these funds served as a security for loans worth $ 50 billionintended for financing the Ukrainian budget.
Of course, the Russian authorities strongly protest against both the use of the assets themselves and any profits they generate.
