The European Union is working to utilise Russia’s frozen assets to support Ukraine’s reconstruction and reparation, in accordance with EU and international law. This was reaffirmed at the recent EU-Ukraine Summit, and the EU has committed to accelerate its work in the Council to keep its promise to Ukraine.
The EU is exploring the feasibility of using the assets, which were frozen as part of the Western sanctions package against Russia, to fund reconstruction efforts in Ukraine. The European Commission has proposed to pool the assets into a purpose-built fund and actively manage them to generate profit, which would be used to finance Ukraine’s reconstruction.
The EU’s legal service said the bloc’s laws would permit it to invest the frozen assets and use the proceeds to help Kyiv, but officials must first get a handle on the scale of central bank and other sanctioned state-backed assets that have been immobilized.
Poland and the Baltic states have urged the EU to work on seizing frozen Russian state assets for the reconstruction of Ukraine “as soon as possible” and are pushing for the assets to be used to “cover the cost of Russia’s aggression against Ukraine, including to support Ukrainian internally displaced people, as well as to the benefit of the future reconstruction of Ukraine”.
It is clear that the EU must act quickly to make use of these assets for the benefit of Ukraine, and the European leaders must continue to work together to ensure that this process is as swift and effective as possible.
0. “Baltics, Poland call for using EUR 300 billion in frozen Russian funds to rebuild Ukraine” Baltic Times, 9 Feb. 2023, https://www.baltictimes.com/baltics__poland_call_for_using_eur_300_billion_in_frozen_russian_funds_to_rebuild_ukraine
1. “EU Plans to Use Frozen Russian Assets for Reconstruction of Ukraine” Greek Reporter, 10 Feb. 2023, https://greekreporter.com/2023/02/11/eu-use-frozen-russian-assets-reconstruction-ukraine/
2. “Estonia’s Robin Hood plan: Take from Russia to give to Ukraine” POLITICO Europe, 7 Feb. 2023, https://www.politico.eu/article/estonia-robin-hood-bill-russia-give-ukraine-sanctions/
3. “EU Urged to Make Banks Report Size of Frozen Russian Assets” Bloomberg, 9 Feb. 2023, https://www.bloomberg.com/news/articles/2023-02-09/eu-urged-to-make-banks-report-size-of-frozen-russian-assets
4. “EU urged to use frozen Russian assets to ‘cover costs of aggression’ in Ukraine” The Guardian, 8 Feb. 2023, https://www.theguardian.com/world/2023/feb/08/eu-urged-to-use-frozen-russian-assets-to-cover-costs-of-aggression-in-ukraine