In the European Union, discussions are underway regarding how frozen Russian assets could be utilized as collateral for a planned International Claims Commission that will determine the compensation amount owed to Ukraine for damages caused by the war. According to TSN, this information has been reported by Kontrakty.UA.
This is reported by Bloomberg citing informed sources.
The publication notes that the assets may ultimately be confiscated if Moscow refuses to compensate for the damages. This concerns the frozen assets of the Central Bank of Russia, which the EU aims to use to provide stable support for Ukraine, especially in light of the potential reduction of aid from the U.S. According to sources, the value of the confiscated assets will be offset by Russia's obligations to compensate for damages as part of a potential peace agreement.
The EU, the G7 countries, and Australia have frozen approximately $280 billion in Russian assets held in these countries in the form of securities and currency. Sanctions imposed on individual Russians have additionally frozen assets worth nearly $58 billion, including homes, yachts, and private jets.
The heads of the economy and finance ministries of the European Union, Valdis Dombrovskis and Maria Luis Albuquerque, stated that the EU must explore all possible options to assist Ukraine, including the confiscation of Russian Central Bank assets.
Another option being discussed involves the EU requiring member states to confiscate sovereign assets as compensation for the destruction of Ukraine's energy infrastructure. However, experts are currently examining whether a decision from the International Criminal Court on this matter and the brutality of the attacks would justify confiscation under the criminal laws of EU member states.
Proposals for the complete confiscation of assets have been rejected by several EU members, including Germany and France. The European Central Bank has also expressed concerns about this idea. Their representatives stated that such a move would not only have legal and economic ramifications but would also have a "dramatic impact" on the international role of the European currency.
Proposals regarding the confiscation of Russian assets are complicated by the fact that the G7 has already utilized the profits derived from these assets to fund a $50 billion loan to Ukraine.
Brussels informed EU ambassadors this week that negotiations for the establishment of an International Claims Commission will commence on March 24. Its task will be to assess claims for damages and determine the exact amount to be paid.
"Without compensation, there can be no justice. Russia must be held accountable for its aggression, and it must pay," stated European Commission President Ursula von der Leyen recently.
It is worth noting that Russia may agree to return assets amounting to $300 billion, frozen in Europe, for the reconstruction of Ukraine. However, the aggressor state will insist that part of the funds be used for the territories in Ukraine occupied by Russia.