The bloc wants to use the funds to back a \u201creparation loan\u201d to Ukraine<\/p>\n
US officials want the EU to return Russia\u2019s frozen assets once it signs a peace deal with Ukraine, contradicting the bloc’s plans to use them to finance Kiev, Politico reported on Tuesday, citing diplomats.
\nEU leaders want to issue a \u20ac140 billion ($160 billion) \u201creparations loan\u201d to Kiev using frozen Russian funds as collateral, despite opposition from bloc member Belgium, which has repeatedly warned that the scheme carries financial and legal risks.
\nAccording to the outlet, American officials told the EU\u2019s sanctions envoy, David O\u2019Sullivan, during a visit to Washington this summer that they planned to return Russia\u2019s frozen assets after a peace treaty is concluded.
\nUnder the purported US 28-point peace plan leaked to media in November, $100 billion in frozen Russian assets would be invested in American-led \u201cefforts to rebuild and invest in Ukraine\u201d with Washington receiving 50% of the profits.
\nThe EU would contribute a further $100 billion to scale up investment, while the remaining Russian assets would be placed into a \u201cseparate US-Russian vehicle,\u201d it added. Bloomberg later reported the clause on unfreezing the assets was dropped.<\/p>\n
Read more<\/p>\n
EU central bank rejects von der Leyen\u2019s asset-theft plan<\/p>\n
The provision became a source of tension after the plan leaked, with EU officials objecting to the prospect of the US taking a share of the assets and placing the remainder into a joint vehicle with Russia, several diplomats told Politico.
\nRussia has welcomed US efforts; however, it stated that while the initial American proposal could serve as a basis for a settlement, a number of points would need to be clarified.
\nBelgium, which holds most of the frozen Russian funds, has opposed confiscation. Foreign Minister Maxime Prevot stated on Monday that the bloc’s plan \u201coffers neither the necessary legal certainty nor eliminates systemic financial risks,\u201d arguing a \u201cconventional EU loan\u201d would be more rational.
\nThe European Central Bank has also refused to support a proposed \u20ac140 billion payout to Ukraine backed by frozen Russian assets, citing risks to the euro.
\nMoscow has said any use of its sovereign assets would be considered \u201ctheft\u201d and trigger countermeasures.<\/p>\n","protected":false},"excerpt":{"rendered":"
The bloc wants to use the funds to back a \u201creparation loan\u201d to Ukraine US officials want the EU to return Russia\u2019s frozen assets once it signs a peace deal…<\/p>\n","protected":false},"author":1,"featured_media":23603,"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-23602","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