EU considers using Russian Сentral Bank assets to help rebuild Ukraine

Bloomberg reports that the discussions are in their early stages, and legal experts have recently been tasked to look into possible options. Bloomberg mentions that this is a rather complex procedure from a legal point of view.

Meanwhile, the EU executive is looking into ways to permanently sever Putin’s access to these assets.

Legal experts will focus on finding ways to eventually seize part of the roughly $300 billion in Central Bank of Russia reserves that were frozen by the EU, the US, and other allies after Russia's invasion of Ukraine.

According to Bloomberg’s sources, the matter has been raised with the US, although it is hard to predict whether the Biden administration would also try to seize Russian funds kept in dollars. So far, Washington has expressed doubts regarding the issue.

The publication writes that the European Commission is “exploring how to make Russia pay for the destruction it caused” and EU leaders have asked it “to present options for using frozen assets for the reconstruction of Ukraine, in line with EU and international law,” according to spokesman Christian Wigand. He also added that “work is underway.”

Didier Reynders, the EU's justice commissioner, stated that the frozen reserves might be held as a guarantee until Russia willingly contributes in Ukraine's reconstruction.

For months, the Ukrainian government has requested that frozen Russian funds be transferred to its accounts as compensation for use in rebuilding the war-torn country. As Ukrainian Prime Minister Denys Shmyhal said back in September, the cost of reconstruction is estimated at 750 billion dollars.

Ukraine is also hoping for the UN to establish an international compensation mechanism.

Separately, the EU is considering the possibility of seizing the assets of Russians who are under sanctions.

EU member states have so far frozen around 17.5 billion euros of assets belonging to sanctioned Russian individuals and businesses.