Tuesday, March 04, 2025

FROZEN ASSETS. . .Income earned from the frozen Russian assets

As Europe scrambles to boost military aid to Ukraine, calls are intensifying to fund it by seizing tens of billions of euros in frozen Russian assets, in an issue causing tension between European allies.
France on Tuesday voiced opposition to seizing frozen Russian assets, arguing such a move would be against international agreements in a stance that puts Paris at odds with its ally Britain.

France Clashes with UK Over Seizing $350B in Frozen Russian Assets for Ukraine | UNITED24 Media
The Baltic countries and Poland are also seen as strongly supporting seizing the assets, while Germany shares France's reservations that such a move would hinder postwar negotiations and also harm its investment image.

Seize Or Freeze?

Friction In Europe Over Russian Assets For Ukraine

By Cécile Feuillatre, Ali Bekhtaoui and Stuart Williams
March 04, 2025, 12:17 pm EST

Since the Russian invasion in February 2022, the EU and G7 have frozen some 300 billion euros of assets of the Russian Central Bank, according to the EU, as well as private assets of individuals such as yachts and real estate.

According to the Institute of Legislative Ideas, a Ukrainian anti-corruption think tank, some $397 billion has been frozen, mostly located in the EU with the vast majority of Russian Central Bank assets managed by Euroclear, an international fund depository based in Belgium.

European Union countries are already using income earned from frozen Russian assets to help arm Ukraine and finance its post-war reconstruction, a windfall worth between 2.5 billion euros and 3 billion euros a year.

"This is perfectly legal from the point of view of international law," said Frederic Dopagne, professor of international public law at Louvain University.

Confiscating the assets "would probably be a violation of international law, but this violation could be justified by international law itself," Dopagne added.

Estimating Future Interest Income From Russia's Frozen Reserves | Council on Foreign Relations

France opposes seizing frozen Russian assets: minister

Paris (AFP) – France voiced opposition Tuesday to seizing frozen Russian assets to fund a European military spending boost for Ukraine, arguing such a move would be against international agreements.

Issued on: 04/03/2025 - 10:39Modified: 04/03/2025 - 10:35

Foreign Policy

Russia's Frozen Assets Might Pay for Ukraine Reconstruction

Europe Minister Benjamin Haddad told France 2 television that, while the seizure of the frozen assets was a "lever" that Europe possessed, he would be wary of using it.

"It still raises legal questions and questions of economic precedent, of the messages sent to investors," he said.

Foreign Minister Jean-Noel Barrot told parliament on Monday evening that billions of euros in income earned from the frozen Russian assets was already reaching Ukraine.

"But the pure and simple confiscation of these assets would represent too great a financial risk for the eurozone, for the European Central Bank, which would weaken member states at a time when they must be as strong as possible to support Ukraine," he said.

During a debate in the French National Assembly on Monday, several lawmakers including former prime minister Gabriel Attal, who now leads President Emmanuel Macron's centrist party, had backed the move.

EU countries are already using income earned from frozen Russian assets to help arm Ukraine and finance its post-war reconstruction, a windfall worth between 2.5 billion and three billion euros a year.

The British Guardian newspaper said Tuesday that the issue was causing "some tension" between the UK and France, which are currently leading European efforts to respond rapidly to Trump's abrupt change of policy on Ukraine.

Inside the European Union, the Czech Republic, Estonia and Poland have been the strongest supporters of seizing the assets and not just using the interest to secure loans for Ukraine, it said.

During his meeting at the White House with Trump last week, Macron himself came out against seizing the assets.

"You can take the proceeds of the frozen assets but you cannot take the assets themselves as this is not respecting international and we want to respect international law," Macron said.