Europe prefers budget aid over risking Russian asset seizure – banker Fursa

Investment banker Serhiy Fursa explained why European countries find it easier to finance aid for Ukraine from their own budgets rather than using frozen Russian assets.

He shared his insights during a broadcast on the Espreso TV channel.

"Without Russia’s permission, this money won’t be given to us. France, Germany, and the leading EU countries are against it. Why? Because these are sovereign assets of the Central Bank. They have a very special status in the global financial hierarchy, financial system, and international law. Such a precedent has never occurred before, and seizing them would be extremely risky for European nations. Why are they afraid? Because Saudi Arabia is already negotiating with them, and I believe China is also communicating on this issue, though not publicly," Fursa noted.

According to the banker, if France and Germany hand over frozen Russian assets to Ukraine, China, and Saudi Arabia may perceive it as a risk to store their funds in European government debt.

"There’s also the question of where they might redirect their funds. I think that if Europe wanted to play tough, they would say ‘it doesn’t matter’ because China has no major alternative markets besides Europe and the U.S. where it can safely store its money. But Europe is afraid to take that stance with China or Saudi Arabia. Instead, European countries prefer to avoid risks. That’s why it's easier for them to finance aid to Ukraine from their own budgets rather than touch these Russian assets," Fursa emphasized.

• Russia may agree to use its frozen $300 billion in assets for Ukraine’s reconstruction as part of a peace agreement but would insist that part of the funds be allocated to the temporarily occupied Ukrainian territories.