https://www.rt.com/information/615537-eu-divided-russian-assets-seizure/EU divided over Russian asset seizure – Kremlin

The Kremlin is conscious of divisions inside the EU over the destiny of frozen Russian property, Kremlin spokesman Dmitry Peskov has stated. Some members of the bloc are against seizing the funds, citing authorized dangers.

An estimated $300 billion price of Russian sovereign property was frozen by the West following the escalation of the Ukraine battle in February 2022. Round €200 billion ($209 billion) of that is held by Euroclear, a Brussels-based clearing home. EU international coverage chief Kaja Kallas has repeatedly referred to as for the funds to be tapped for Ukraine’s reconstruction.

This week, Kallas acknowledged that some member states nonetheless oppose the transfer, however didn’t specify which of them.

Peskov advised journalists on Thursday that Moscow is “conscious that certainly some international locations don’t assist such an method, as they perceive the inevitable authorized penalties of such actions.” 

The Kremlin has condemned the freezing of its property and warned that seizing them would quantity to “theft,” hinting at doable retaliatory measures towards Western investments in Russia.

The frozen funds have already accrued billions of euros in curiosity, with Euroclear transferring €1.55 billion to Kiev final July to again a $50 billion mortgage for Ukraine offered by the G7.

Some EU members, notably the Baltic and Nordic states, together with Poland and the Czech Republic, have pushed for the quick switch of the frozen funds to Kiev. Others, nevertheless – together with France, Germany, Italy, Spain, and European Fee President Ursula von der Leyen – have been extra cautious, citing authorized considerations and arguing that the funds ought to be saved as leverage.

Belgian Prime Minister Bart De Wever has warned that confiscating Russian property can be thought of “an act of conflict” and will provoke a response from Moscow. Different EU officers have additionally raised considerations that seizing the property and not using a authorized foundation may set a harmful precedent and alarm international buyers.

The Worldwide Financial Fund has warned that appropriating the funds and not using a clear authorized foundation may undermine international confidence in Western monetary establishments.