Can the frozen Russian assets generated after the invasion of Ukraine be channelled to fund weapon acquisitions in favor of Kiev ? This is a question posed in the wake of a Brussels announcement that has consequently led Russia to threaten the EU with decades-long litigation, terming the plan as ’robbery’.
The European Commission estimates that the frozen assets could generate between 2.5 and 3 billion Euros in 2024 alone, as per our Brussels correspondent, Pierre Benazet. Following the Ukraine invasion, Russian Central Bank assets worth about 260 billion Euros were frozen, of which two-thirds (approximately 210 billion Euros) have been immobilized in EU’s financial institutions.
Now, two years since the war onset, the Ukrainian army is short of troops and direly needs ammunition and air defense systems to withstand the Russian army’s offense. "The summer will be decisive," highlighted the EU High Representative for Foreign Affairs and Security Policy, Josep Borrell, who anticipates a significant Russian onslaught against Ukraine during this period.
Shortly after the announcement of the plan, Russia threatened litigation against the EU, claiming serious damage to their economy, reputation, and image as reliable guarantors of inviolable property rights. Maria Zakharova, Spokeswoman for the Russian Foreign Ministry, termed the initiative as ’theft’ and a gross and unprecedented violation of basic international norms. She promised Moscow would respond to the proposal.
Despite such threats, the proposal has some in the EU confident of its legal validity, as the plan does not infringe on the capital but focuses merely on the profits generated. The topic of utilizing Russia’s assets, which were blocked after the commencement of the Ukraine invasion in February 2022, is very much under discussion. Some countries fear the potential implications of such a seizure, especially on the financial markets. As a result, seizing the generated revenues may be a more viable option, with some expecting the proposal to be legally sound and not open to any international litigation.
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