Tuesday

26th Sep 2023

EU and US keen to seize Russian funds for Ukraine

  • EU financial affairs commissioner Valdis Dombrovskis (Photo: ec.europa.eu)
Listen to article

The EU is carrying out legal assessments on whether it can use frozen Russian money to rebuild Ukraine after the war, the EU Commission said Wednesday (18 May).

"We need to make sure Russia pays for its aggression against Ukrainian people and the damage it has caused," EU financial affairs commissioner Valdis Dombrovskis said.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

"We are not alone in this and the US thinking goes in the same direction", he added.

The potential Russian pot would consist of some €285bn from frozen Russian central bank reserves as well as more than €30bn in frozen private assets of Russian oligarchs.

"We are doing the legal assessments, but clearly we must cast the net wide. There is a principle in international law that the aggressor pays and we must make sure Russia pays for the damage it is creating," Dombrovskis added.

The seizure of private assets of oligarchs "has to be done on the basis of criminal law [in those countries] where the assets are located," he also said.

The US treasury secretary, Janet Yellen, who is visiting Europe this week, echoed the EU line while in Bonn, Germany.

"It's very natural that given the enormous destruction in Ukraine, and huge rebuilding costs that they will face, that we will look to Russia to help pay at least a portion of the price that will be involved," she said, Reuters reports.

"That said, while we're beginning to look at this, it would not be legal now in the United States for the government to seize those assets," she noted.

"It's not something that is legally permissible in the United States", she added.

In the meantime, the EU Commission has said it was ready to pay Ukraine €9bn in macro-financial assistance in the coming "weeks", according to economic affairs commissioner Paolo Gentiloni.

The International Monetary Fund estimates Ukraine will fall short by some €14bn by June to pay for wages and pensions and to keep schools and hospitals open in a shortfall growing by some €5bn a month as things stand.

The US and other Western countries, such as Canada, are also pouring in funds to help keep Ukraine going, but Europe's share will be the largest "since the war is on [our] borders", Dombrovskis noted.

The EU has already paid out €4.1bn since the war began in February, but will "continue to provide short-term financial support to Ukraine to meet its needs and keep basic services running," EU Commission president Ursula von der Leyen said Wednesday.

"We stand ready to take a leading role in the international reconstruction efforts to help rebuild a democratic and prosperous Ukraine" after the war ends as well, she added.

Opinion

Georgia, Moldova, Ukraine - the case for granting EU candidacy

Granting EU candidacy status to Georgia, Moldova and Ukraine will firmly anchor their ties with Brussels — and enable the EU to secure its place in the Black Sea region, connecting Europe to China and energy-rich Central Asia, bypassing Russia.

EU aims to seize Russian assets amid legal unclarity

EU Commission president Ursula von der Leyen said "no stone should be left unturned" in helping Ukraine rebuild post-war, including possibly seizing and repurposing Russian central bank assets — a move which would likely be challenged under international law.

EU’s €500m gender violence plan falls short, say auditors

The 'Spotlight Initiative' was launched in 2017 with a budget of €500 million to end all forms of violence or harmful practices against women and girls in partner countries, but so far it has had "little impact", say EU auditors.

Latest News

  1. EU trade chief in Beijing warns China of only 'two paths' forward
  2. Why should taxpayers pay for private fishing fleets in third countries?
  3. Women at risk from shoddy EU laws on domestic workers
  4. EU poised to agree on weakened emission rules
  5. China trade tension and migration deal This WEEK
  6. Europe's energy strategy: A tale of competing priorities
  7. Why Greek state workers are protesting new labour law
  8. Gloves off, as Polish ruling party fights for power

Stakeholders' Highlights

  1. International Medical Devices Regulators Forum (IMDRF)Join regulators, industry & healthcare experts at the 24th IMDRF session, September 25-26, Berlin. Register by 20 Sept to join in person or online.
  2. UNOPSUNOPS begins works under EU-funded project to repair schools in Ukraine
  3. Georgia Ministry of Foreign AffairsGeorgia effectively prevents sanctions evasion against Russia – confirm EU, UK, USA
  4. International Medical Devices Regulators Forum (IMDRF)Join regulators & industry experts at the 24th IMDRF session- Berlin September 25-26. Register early for discounted hotel rates
  5. Nordic Council of MinistersGlobal interest in the new Nordic Nutrition Recommendations – here are the speakers for the launch
  6. Nordic Council of Ministers20 June: Launch of the new Nordic Nutrition Recommendations

Join EUobserver

Support quality EU news

Join us