western-banks-have-a-prejudice-against-using-the-income-of-russian-assets-in-favor-of-ukraine

Western banks have a prejudice against using the income of Russian assets in favor of Ukraine

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Some Western banks warn of the risks of the EU's plan to gain access to Russian assets. This was reported by Reuters, citing its own sources, UNN reports.

Some Western banks are opposed to the EU's proposal to redistribute billions of euros in interest earned on frozen Russian assets to Ukraine. They fear that this could lead to costly litigation.

European Union leaders on Thursday discussed a plan to use up to 3 billion euros ($3.26 billion) a year to send weapons to Ukraine to help Kyiv fight Russia, which still faces an asset freeze.

The sources, who declined to be named due to the sensitivity of the issue, said they had shared their concerns with UK and eurozone politicians, indicating the likelihood of a trial if anti-Russian sanctions are eventually eased or lifted, the newspaper writes.

Context

Russian assets frozen in the EU are worth billions. According to the EU plan, Ukraine can use this money to buy weapons. Among the biggest supporters of the plan are Germany and France and other countries. Estonia wants to take another step - to use all its frozen Russian assets for Ukraine.

European Union leaders on Thursday agreed to move ahead with a plan to use up to 3 billion euros ($3.3 billion) a year to supply weapons to Ukraine, in a bid to bolster Kyiv's fight against Russia, which will still hold key frozen assets. . EU leaders have said the proceeds could be used within months.

Масштабна атака рф: пошкоджені десятки об’єктів енергосистеми, аварійні відключення в 7 областях - Укренерго 22.03.24, 11:01

Details

Western banks are also holding billions of euros, pounds and dollars in assets belonging to companies and individuals subject to sanctions.  10% of the profits from Russian assets that have lost their financial validity are allowed to be temporarily held in the Central Securities Depository based in Belgium as a guarantee against legal proceedings.

According to the EU's plan, about 90% of the money will be used through the European Peace Fund to purchase weapons for Ukraine. The rest will be used for recovery and reconstruction.

Russia says that any attempt to seize its capital or interest is "banditry" that will lead to decades of lawsuits against all involved.

Recall

On Monday in Brussels, Polish Foreign Minister Radoslaw Sikorski said that the frozen Russian assets should be spent on preventing the consequences of aggressionand on protecting Ukraine, not on its restoration. He expressed this opinion to the Polish edition of PAP.

The frozen Russian assets should be used to pay compensation to Ukrainianswho suffered from Russian aggression, as Russia must pay reparations for the damage caused by its war crimes, according to Ukraine's Prosecutor General Andriy Kostin.

Литва передала Україні системи для боротьби з безпілотниками22.03.24, 14:23

Ihor Telezhnikov

War

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