Russian Central Bank calls EU plans to use frozen assets illegal
The Russian central bank has reacted sharply to the European Union's plans to use the proceeds of frozen Russian reserves to support Ukraine. The regulator said in a statement that such actions violate basic norms of international law and undermine confidence in the global financial system.
The EU is currently considering a mechanism to use the proceeds of approximately 210 billion euros of Russian assets, which are held mainly in the Belgian Euroclear. According to Reuters, the profits from their placement could bring in about 3 billion euros a year, which Brussels plans to use to support Ukraine.
The Russian central bank is considering a mechanism to use the profits from the 210 billion euros of Russian assets held mainly in Belgium's Euroclear.
The Central Bank of Russia said that such steps could harm all states whose assets are held in EU jurisdictions, as the principle of inviolability of sovereign reserves is violated. They also stressed that Moscow will take «all possible measures» to appeal the relevant decisions in international courts.
The day before, the EU agreed on the indefinite immobilisation of Russian assets, which removes the risk of their automatic return to Moscow during the next renewal of sanctions. This decision paves the way for the creation of a financial instrument that could provide Ukraine with a loan of up to 210 billion euros.
Brussels emphasises that it is not about using the assets themselves, but only the income from them, which, according to the European Commission, does not violate international law. However, Moscow accuses the EU of trying to «legalise the confiscation of other people's money».
Discussions in the EU are ongoing, and a final decision on the mechanism of using the proceeds is expected in the coming weeks.
