RT.com
27 Jan 2023, 21:20 GMT+10
Brussels reportedly wants to use the seized assets to rebuild Ukraine
The European Union has told member states that it has legal authority to temporarily leverage a hefty amount of Russian Central Bank assets to pay for the rebuilding of Ukraine, Bloomberg reported on Thursday, citing people familiar with the matter.
The mechanism could reportedly involve as much as €33.8 billion ($36.8 billion) of the funds frozen by the bloc as part of the Ukraine-related sanctions imposed on Moscow.
According to the EU's Council Legal Service, the plan is legally feasible if the assets aren't expropriated and certain conditions are met. These include a termination date, a focus on liquid assets, and clarity that the principal and interest would be returned to Russia at some point, according to people close to the discussions.
The Group of Seven (G7) and the EU reportedly failed to find a clear legal basis for simply confiscating Russian assets.
Instead, Brussels is considering the idea of pooling the frozen assets together at EU or international level to generate returns that could be used to finance the rebuilding of Ukraine.
According to a number of estimates, the Russian Central Bank's frozen assets amount to some $300 billion worldwide. EU officials had previously said almost €34 billion ($37 billion) of the funds are sitting in EU-based deposits. The figure is, however, still under assessment.
In November, European Commission President Ursula von der Leyen proposed that the bloc's authorities should create a special structure to manage the frozen Russian funds and invest them with a view to using the proceeds for Ukraine.
The Russian government has repeatedly called the freezing of the country's assets "theft," and warned that the step contravenes international law. According to Moscow, the very idea of international reserves has been discredited by the use of the US dollar as a weapon in the sanctions war against Russia.
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of St Louis Star news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to St Louis Star.
More InformationWASHINGTON D.C.: After several high-profile near collision incidents, the US Federal Aviation Administration (FAA) has issued a safety alerts to ...
PHNOM PENH, Cambodia: Two Cambodian opposition figures--- Yim Sinorn and Hun Kosal--- have been charged under the country's rarely used ...
WASHINGTON D.C.: The US Supreme Court has ruled that a deaf student in Michigan can sue his public school district, ...
MANILA, Philippines: Under a defense agreement with the U.S., four new military bases will be located in various parts of ...
WASHINGTON D.C.: The US Centers for Disease Control and Prevention (CDC) has reported that infections by the potentially deadly fungus ...
WASHINGTON D.C.: The US Supreme Court will hear a trademark dispute over a dog toy shaped like a Jack Daniel's ...
BENTON, Arkansas: Reuters reported that due to a reduction or elimination in evening and weekend shifts, Walmart will lay off ...
MOSCOW, Russia: As western automakers have left Russia since the start of the Ukraine war, the Chinese have rushed in ...
LONDON, England: Reuters has reported that struggling Virgin Orbit, owned by billionaire Richard Branson, is nearing a $200-million investment deal ...
NEW YORK CITY, New York: To comply with the requirements of the "Made in America" laws, a $7.5 billion federal ...
LONDON, England: During a Bloomberg conference held in London this week, Luke Ellis, CEO of hedge fund Man Group, said ...
NEW YORK, New York - Wall Street jumped on Friday, although gains were modest after bank shares in Europe came ...