BRUSSELS, June 28. /TASS/. The issue of using Russia’s frozen assets by the European Union for Ukraine is controversial as there are "side effects," an EU representative told reporters on Wednesday in the run-up to the summit on June 29-30.
"It is controversial because there are many side effects," he said, adding that EU leaders would traditionally discuss the issue as part of the Ukrainian conflict subject.
EU leaders discuss the possibility of using Russia’s frozen assets for rebuilding Ukraine after the conflict at each summit, though they cannot find the legal framework for it, and they are also divided on how to act. The Financial Times wrote earlier citing a source in the EU that some member states are pushing the European Commission to delay its proposals on using Russian assets. Big countries including Germany are reluctant to rush down this route as they fear that a radical proposal could shake faith in the safety of assets stored by foreign states in Europe, the paper said.
The European Commission said earlier that it was examining another route: managing the Russian assets to generate returns that could be used for Ukraine, while ensuring the underlying assets can eventually be returned to Russia, the newspaper wrote. However, this still carries legal jeopardy and poses a risk that the assets lose value and have to be made whole by European taxpayers, FT noted.
The EC has repeatedly stated since last year that the existing European legislation does not permit confiscation of foreign assets frozen as a result of unilateral EU restrictions and their transfer to another person or state. Meanwhile, the Commission has started intensive efforts on changing the European regulation to legalize confiscation of such assets.