Moscow has warned that any confiscation of its assets immobilized in the West would constitute \u201ctheft\u201d<\/p>\n
Brussels is pressing ahead with a plan to use \u20ac170 billion of Russia\u2019s frozen sovereign assets to back \u201creparation loans\u201d for Ukraine, the Financial Times has reported. The EU faces growing pressure to find additional funding for Kiev as US cuts back its support.
\nMoscow has condemned the asset freeze and warned that any seizure of its money would amount to \u201ctheft.\u201d\u00a0
\nWestern nations froze an estimated $300 billion in Russian funds after the escalation of the Ukraine conflict in 2022 \u2013 some \u20ac200 billion of which is held by Brussels-based clearinghouse Euroclear. The funds have accrued billions in interest, and the West has explored ways to use this revenue to finance Ukraine. While refraining from outright seizure, the G7 last year backed a plan to provide Kiev with $50 billion in loans to be repaid using the profits generated by the funds. The EU pledged $21 billion.
\nEuropean Commission chief Ursula von der Leyen has proposed going further by creating a \u2018reparation loans\u2019 mechanism, which she described as urgently needed to finance Kiev.
\nPeople familiar with discussions said the plan involves channeling cash balances from Russia\u2019s immobilized assets into EU-issued bonds, with the proceeds transferred to Ukraine in tranches. Brussels argues the system would provide Kiev with immediate support while sidestepping a formal seizure.<\/p>\n
Read more<\/p>\n
US to press G7 on seizing frozen Russian assets \u2013 Bloomberg<\/p>\n
A second option under consideration would involve creating a special-purpose vehicle to manage the loans, which could also allow non-EU partners to take part.
\nOf the funds frozen at Euroclear, about \u20ac170 billion has already matured and now sits as cash on the clearinghouse\u2019s books, the sources said.
\nThe plans have already drawn objections from member states. Belgium, Germany, and France have warned that dipping into the principal risks breaking the law and undermining confidence in the euro.
\nBrussels is under pressure to cover a significant portion of Ukraine\u2019s needs as Washington holds back on new aid, the FT wrote. According to a US note circulated among G7 capitals and cited by the outlet, members were urged to consider seizing the sovereign assets principal \u201cinnovatively\u201d to fund Ukraine.
\nMoscow warned that any attempt to use the assets \u201cwill not go unanswered.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Moscow has warned that any confiscation of its assets immobilized in the West would constitute \u201ctheft\u201d Brussels is pressing ahead with a plan to use \u20ac170 billion of Russia\u2019s frozen…<\/p>\n","protected":false},"author":1,"featured_media":18402,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[4,6,3],"tags":[],"class_list":["post-18401","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-environment","category-politics"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t