EU Leaders Discuss Use of Frozen Russian Assets for Ukraine Reparations
European Council President António Costa advocates for utilizing frozen Russian funds to support Ukraine's reconstruction amidst conflicting opinions from member states.
European Council President António Costa has stated that frozen Russian assets in the European Union should be allocated for war reparations to Ukraine.
Speaking at an event held by the European Policy Centre in Brussels, Costa emphasized the necessity of ensuring that Russia, as the aggressor, bears the financial responsibility for the consequences of its actions.
He remarked, "We need to ensure that the aggressor pays for the results of their aggression," underlining the importance of maintaining control over these assets to facilitate their future use for reparations.
Costa highlighted that the profits generated from these frozen Russian funds are currently being utilized to finance a significant $50 billion (€46 billion) loan deal to Ukraine, which was agreed upon by G7 leaders last year.
Following the full-scale invasion of Ukraine by Russia in 2022, around €300 billion in Russian central bank assets were frozen in Western jurisdictions.
Of this amount, approximately €190 billion is currently held in Euroclear, a clearing house based in Brussels.
A joint study released last month by the European Commission, along with representatives from the Ukrainian government, the World Bank, and the United Nations, estimated that the total cost for Ukraine's reconstruction due to the war will reach €506 billion over the next ten years.
Costa’s comments arrive shortly after Belgian Prime Minister Bart De Wever raised concerns regarding the potential repercussions of confiscating these assets.
De Wever classified the act of seizing frozen assets as an "act of war," warning that such a move could provoke a strong reaction from Moscow and create systemic risks to the global financial system.
De Wever noted, "It seems to be very just: take the money, you give it to Ukraine for reconstruction.
But we're not living in a world of fantasy.
This is the real world where if you take €200 billion from somebody, there will be consequences."
Support for the seizure of the frozen assets is particularly strong among Eastern European member states and has not been dismissed by the European Commission.
Conversely, Belgium finds allies in the Netherlands and Luxembourg, who share concerns about moving forward with the confiscation.
A spokesperson for the Belgian government did not provide immediate comments regarding the situation.
Speaking at an event held by the European Policy Centre in Brussels, Costa emphasized the necessity of ensuring that Russia, as the aggressor, bears the financial responsibility for the consequences of its actions.
He remarked, "We need to ensure that the aggressor pays for the results of their aggression," underlining the importance of maintaining control over these assets to facilitate their future use for reparations.
Costa highlighted that the profits generated from these frozen Russian funds are currently being utilized to finance a significant $50 billion (€46 billion) loan deal to Ukraine, which was agreed upon by G7 leaders last year.
Following the full-scale invasion of Ukraine by Russia in 2022, around €300 billion in Russian central bank assets were frozen in Western jurisdictions.
Of this amount, approximately €190 billion is currently held in Euroclear, a clearing house based in Brussels.
A joint study released last month by the European Commission, along with representatives from the Ukrainian government, the World Bank, and the United Nations, estimated that the total cost for Ukraine's reconstruction due to the war will reach €506 billion over the next ten years.
Costa’s comments arrive shortly after Belgian Prime Minister Bart De Wever raised concerns regarding the potential repercussions of confiscating these assets.
De Wever classified the act of seizing frozen assets as an "act of war," warning that such a move could provoke a strong reaction from Moscow and create systemic risks to the global financial system.
De Wever noted, "It seems to be very just: take the money, you give it to Ukraine for reconstruction.
But we're not living in a world of fantasy.
This is the real world where if you take €200 billion from somebody, there will be consequences."
Support for the seizure of the frozen assets is particularly strong among Eastern European member states and has not been dismissed by the European Commission.
Conversely, Belgium finds allies in the Netherlands and Luxembourg, who share concerns about moving forward with the confiscation.
A spokesperson for the Belgian government did not provide immediate comments regarding the situation.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
