The European Union outlines a plan to seize proceeds from frozen Russian assets and send them to Kiev

Published on: 03/20/2024 – 8:58 pmModified: 03/20/2024 – 9:25 pm

4 minutes

Between 2.5 billion and 3 billion euros for 2024 alone: ​​this is the European Commission’s calculation of what frozen Russian assets could bring, our correspondent in Brussels reports. Pierre Benazet.

Since the invasion of Ukraine, About 260 billion euros in assets of the Russian Central Bank is stable, two-thirds of which – about 210 billion euros – are tied up in financial institutions in the European Union. From February 15, these financial institutions, credit depositories, are prohibited from touching the profits generated by these assets – or from distributing dividends to shareholders.

But now, a little more than two years into the war, the Ukrainian military is undermanned and demanding munitions and air defense systems to contain the onslaught of Russian forces. ” Summer will be crucial », underlined at this point Josep Borrell, J Expect a major Russian offensive against Ukraine

During this period. ” Everything will be decided this summer “, he insisted.

According to this proposal, the European Union will tax financial institutions holding 97% of Russian assets, and send them to Ukraine: ultimately, these assets allocated for the reconstruction of Ukraine. But for 2024, 90% of the seized revenue will go to the European Peace Facility (EFF), which finances arms purchases. The remaining 10% will be paid into the EU budget “ Strengthening the capabilities of the Ukrainian defense industry “, according to Josep Borrell.

The proposal is expected to be discussed by leaders of the 27 member states at a summit on Thursday March 21 and Friday March 22.

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Moscow threatens action Over decades » Cope with Flight »

Russia threatened legal action against the European Union shortly after the plan was announced. Over decades ” ” Europeans should be well aware of the damage such decisions can do to their economy, their image, their reputation as a reliable guarantor of property inviolability.Kremlin spokesman Dmitry Peskov warned the press. The people involved in making such decisions, the states, will naturally be the subject of proceedings for many decades. “, he added.

Russian diplomatic spokeswoman Maria Zakharova condemned an initiative that amounted to ” Bandit “and” Flight ” ” These actions are a clear and unprecedented violation of basic international norms “, she said, promising a response from Moscow.

For Eric Maurice, an expert at the European Policy Center in Brussels, “ Russia is in its role

“, but it only ” Intimidation ” because if ” Member States accept the proposal “,” It is legally solid » and therefore not reprehensible before international justice.

A legally protected plan?

But according to European officials, the plan submitted to the twenty-seven for their agreement is safe from a legal point of view, as there is no question of touching the capital itself, but only ” Profits made by private operators », in this case a financial institution with Russian assets. According to him, this income is not the property of Russia.

According to the same sources, in case of swift agreement by EU member states, the measures could be implemented as early as July.

How to use Russian state assets blocked after Russia launched its invasion of Ukraine in February 2022, is a hotly debated topic. Some countries fear the consequences of such a seizure, whether it concerns the revenue of Russian assets or, a fortioriOn these holdings themselves, fearing the precedent this could set for financial markets.

According to Eric Maurice, an expert at the European Policy Center in Brussels, the debate around this measure is legal but also politico-financial, because it is difficult to confiscate funds in itself: hence the choice to confiscate the revenue that generates the funds. .

Russia summoned the Swiss ambassador to Moscow last week to protest a vote on measures intended to allow Switzerland to use Russian assets frozen on its territory to finance reparations to Ukraine.

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