European Union: Impossible Russian Confiscated Assets Worth 210 Billion Euros Returned To Moscow

JAKARTA - The European Union's Head of Foreign Policy, Kaja Kallas, insists it is impossible to imagine the return of frozen Russian assets within the bloc due to the war in Ukraine except for Moscow paying compensation.

"We cannot imagine that if there was a ceasefire or a peace agreement, these assets would be returned to Russia if they had not paid compensation," he said.

The European Union said about 210 billion euros ($245.85 billion) of Russian assets were frozen in the bloc under sanctions imposed on Moscow over its invasion of Ukraine.

Ukraine and several European Union countries, including Poland and Baltic countries, have asked the European Union to confiscate these assets and use them to support Kyiv.

However, major European Union, French and German countries along with Belgium, which hold most assets, rejected the call.

They have shown the European Union has allocated future advantages of the asset to repay support for Ukraine and question whether there is a legal basis for confiscation of the asset.

Diplomats say the debate is now turning to how the funds could be used, after the war in Ukraine ended.

Meanwhile, Belgian Prime Minister Bart De Wever previously proposed frozen Russian state assets from the start of Ukraine's war to remain in the securities repository of Euroclear in Belgium. According to him, confiscation of these assets in Ukraine's interests will cause legal problems.

The G7 countries have frozen about 300 billion Russian state assets since Moscow's invasion of Ukraine in 2022. The European Union estimates 210 billion euros ($246 billion) of which are stored in the European Union, particularly in the form of government bonds in Euroclear's repositories.

"A lot of these funds were mobilized in Brussels in Euroclear. I know there is a government trying to confiscate the money. However, I want to warn that this is not that easy legally," Prime Minister Bart De Wever told reporters at a press conference with German Chancellor Friedrich Merz in Berlin. reported by Reuters, Wednesday, August 26.

De Wever said the assets included funds from Russia's immune-law central bank, meaning any political decision to confiscate them could have serious repercussions.

"Other countries will also withdraw their state funds. This will have a systemic impact and also be very dangerous from a legal perspective. I believe we must keep this country's funds mobilized," he said.

He said the use of the funds to help Ukraine was acceptable, but he warned against using its basics.

"It's like a goose laying gold. We have to keep this goose. And in the end, when we talk about a peace agreement, the goose can be placed on the table, until now I'm sure it's wise to keep the situation like it is today," he continued.