“European Commission continues to work on a “reparation loan” but opposes the seizure of 200 billion euros from Russian assets – EuractivThe European Commission has rejected the demand by EU lawmakers to confiscate 200 billion euros of frozen Russian central bank
assets. This would violate international law and risk widespread retaliatory measures from Moscow.
”, — write: unn.ua
DetailsJohn Berrigan, Director-General of the European Commission’s financial services department, told MEPs that Brussels’ attempt to use these assets to finance a “reparations loan” to Ukraine would only “mobilize” the funds without touching their “ownership,” and thus would not technically be considered a unilateral expropriation.
Echoing statements by European Central Bank President Christine Lagarde and others, Berrigan warned that the seizure would violate the assets’ sovereign immunity and potentially jeopardize global financial stability.
“I understand your frustration, but we must understand that this [sovereign immunity] is a very important point,” Berrigan told the European Parliament’s Committee on Economic and Monetary Affairs.
The veteran European Commission official added that seizing the assets would cause “very detrimental damage to the international financial system,” as the principle of sovereign immunity has universal legal application. “Once you violate it, it is violated for all countries,” he said.
These statements came after committee deputy chairman Luděk Niedermayer expressed “frustration” that the EU had not been able to “find a way” to seize Moscow’s assets more than three years after the full-scale invasion of Ukraine.
“Unfortunately, we are still saying that it is legally complicated, but it is not 2022 in the courtyard, but 2025,” said the Czech MEP, a representative of the same center-right European People’s Party as European Commission President Ursula von der Leyen.
The vast majority of sovereign assets that were immobilized shortly after the full-scale invasion are held by Euroclear, a clearing company based in Brussels.
“Belgium, France, and Germany are strongly opposed to seizing the assets due to fears that it would be illegal and could negatively affect foreign investment in the eurozone. This step is strongly supported by many Eastern EU countries to support the war effort and the reconstruction of Kyiv,” the publication says.
The profits from these assets are currently used to finance a 45 billion euro loan provided to Ukraine as part of a separate program organized by the Group of Seven.
According to Berrigan, the EU has also frozen assets worth about 28 billion euros belonging to 2,500 private individuals and companies from Russia and Belarus. However, he warned that these funds could only be confiscated in the event of a “proven connection to criminal activity.”
“Sanctions alone cannot change ownership,” he said.
“Reparations loan”The “reparations loan,” which European Commission President Ursula von der Leyen announced earlier this month, is intended to finance Ukraine’s recovery and meet its budgetary needs and will only be repaid after Russia pays reparations to Ukraine.
The loan plan provoked a strong reaction and threats of retaliatory measures from the Kremlin, which claims that the scheme amounts to “theft.”
Berrigan, however, suggested that the plan would not lead to retaliatory measures because it does not involve confiscation. “There are no excuses for retaliatory measures, as we have not actually violated international law,” he said.
The plan, which Berrigan said is still “being developed” by the European Commission and was discussed by EU finance ministers last week, instead involves mobilizing frozen assets using guarantees provided by EU member states.
Ultimately, the loan will either be repaid “from Russian reparations, or remain outstanding, secured by the collateral of these assets,” Berrigan explained.
“It is the guarantee that the European Union will provide that allows this loan to be granted without using any other collateral,” he added.
Germany supports EU plan to transfer frozen Russian assets to Ukraine – Politico25.09.25, 15:32 • 2138 views