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Military operation in Ukraine

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EU to keep working on possible use of frozen Russian assets for Ukraine’s benefit

"The European Council took stock of the work done regarding Russia’s immobilised assets, and invites the Council, the High Representative and the Commission to take work forward, in accordance with EU and international law, and in coordination with partners," the statement says

BRUSSELS, June 30. /TASS/. Leaders of the European Union tasked the European Commission with continuing its work on the possible use of frozen Russian assets for the interests of Ukraine, the EU summit said in a statement, issued early on Friday.

"The European Council took stock of the work done regarding Russia’s immobilised assets, and invites the Council, the High Representative and the Commission to take work forward, in accordance with EU and international law, and in coordination with partners," the statement says.

The document also reiterates EU commitment to "supporting Ukraine’s repair, recovery and reconstruction, in coordination with international partners, including in the areas of psychological and psychosocial rehabilitation and demining assistance."

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.

According to the European Commission, the EU has frozen Russian Central Bank assets worth around 200 billion euro and privately owned assets worth around 24 billion euro.

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