Europe May Decide on Russian Assets in the Coming Days – British Expert
Coins of 1 ruble and 1 euro against the background of a 5 euro banknote.
The EU is debating a plan to use frozen Russian assets for a “reparations loan” to Ukraine — but consensus remains elusive.”There is quite a lot of debate about that. But it will be decided in the next few days,” says Richard Sakwa, Honorary Professor of Political Science at the University of Kent.
"It's a very complicated legal attempt to do an illegal action,” Sakwa explains. "If this goes forward, at the moment France has not given its go-ahead, and Germany has agreed to it, which is surprising given [chancellor Friedrich Merz's strong advocacy for a military solution in Ukraine."
“It’s a huge question,” Sakwa says. “If these assets are used in the way suggested, what will Russia do?”EconomyEU Allocates €1.4 Bln From Frozen Russian Assets for Ukraine’s Air Defenses and Ammunition17 September 2024, 12:51 GMTThe academic also notes that British Petroleum and some Italian and French firms have continued trading in Russia. While BP has withdrawn, it still holds around $25 billion in Russian bank accounts that cannot be transferred back to the West.The proposal faces strong opposition, with Belgian PM Alexander De Croo insisting “this will never happen,” warning it sets a dangerous precedent.Following Russia’s military operation in Ukraine, the EU and G7 froze nearly €300 billion in Russian assets, with over €200 billion held in the EU. Russia has repeatedly called the asset freeze “theft” and vowed to respond.
