Financial Times: Europeans Plan to Seize Russian Assets Worth over 200 Billion Euros
In the wake of Donald Trump's decision to suspend US military aid to the Kiev regime, the European trio of Britain, France, and Germany are fantasizing about seizing Russia's frozen billion-dollar assets. The Kremlin called it “robbery in broad daylight”
The major European powers have revised their position and now support the initiative to seize more than 200 billion euros of frozen Russian assets. According to the British newspaper Financial Times, France and Germany, which previously opposed the “full-fledged” seizure of all Russian funds held in European Union financial institutions, are now negotiating with Britain and other countries on possible methods of using Russian money.
According to “reliable sources” cited by the Financial Times, “Paris has suggested to seize Russian assets if Moscow violates a possible future ceasefire agreement in Ukraine.” This step, which contradicts both the spirit and the letter of international law, is planned to be presented in the European Union as “part of an initiative to provide Kyiv with security guarantees in the post-conflict period.”
As the Financial Times reminds us, “G7 countries froze about 300 billion euros of Russian Central Bank assets in 2022, just after the start of the armed conflict between Russia and Ukraine. Most of these funds – about 190 billion euros – are held at the Belgian depository center Euroclear. In addition, Russian assets, albeit in a smaller volume, are also placed in France, Great Britain, Japan, Switzerland, and the USA.” Currently, interest accruing on Russian Federation assets denominated in cash and Government bonds is being used – in circumvention of international law – to repay $50 billion in loans to Ukraine from the G7 countries. However, the frozen assets themselves remain untouched for now.
According to the Financial Times, “the EU countries most hostile to Russia – from Poland to the former Soviet Baltic republics – have long insisted on the full seizure of Russian assets. However, key European capitals, among them Berlin and Paris, as well as the European Commission, until recently rejected the initiative, fearing that seizing state property would set a dangerous precedent for international law.” Even the European Central Bank has expressed concern that such actions could undermine the euro’s status as a reliable currency for foreign reserves, since much of Russia’s frozen assets are denominated in euros.
Last week, during talks with Donald Trump, French President Emmanuel Macron said the immediate seizure of Russian assets would not be “in accordance with international law.” However, he said Russian money could be “an element of the negotiation process to end the military conflict.” Friedrich Merz, a candidate for the post of German chancellor, in turn, said that he was “ready to consider the possibility of confiscating frozen Russian assets.” On Wednesday, Merz is set to discuss the issue with current Chancellor Olaf Scholz to develop a common position ahead of the summit of EU leaders on Thursday, March 6.
On Monday, March 3, British Prime Minister Keir Starmer said that London is also considering seizing Russian assets. “Of course, the proceeds and profits made will be utilized,” Starmer said in a statement to MPs. His words followed signing an agreement with Zelensky over the weekend. Under this document, Britain will provide Ukraine with a loan of 2.26 billion pounds sterling, the source of which will be interest accrued on Russian sovereign assets.
