“The European Commission is developing a mechanism that will allow to transfer almost 200 billion euros of frozen Russian assets into a special fund and direct them to rebuild Ukraine after the end of the war. Source: Politico with reference to several European officials: according to the publication, Brussels checks the readiness of national governments to transfer assets into more risky investments that could bring more profits for Ukraine and increase pressure on Russia, which refuses to stop fighting.”, – WRITE: www.pravda.com.ua
Source: Politico with reference to several European officials
Details: According to the newspaper, Brussels checks the readiness of national governments to transfer assets into more risky investments that could bring more profits for Ukraine and increase pressure on Russia, which refuses to stop fighting.
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Proponents also consider this scheme as a step to the potential confiscation of assets and their transfer to Ukraine as a punishment for Russia’s refusal to pay post -war reparations.
The publication notes that this option does not provide for immediate confiscation of assets, against which most EU countries oppose financial and legal considerations.
On Saturday, 27 EU foreign ministers will be discussed for the first time during an informal meeting in Danish Copenhagen. According to the preparatory note, which the publication was acquainted, it will be about “further use of income from frozen sovereign assets of Russia.”
“We hear that it is more difficult to raise funds (from national budgets or EU budgets – ed.)
In the European Commission, this idea is promoted by the Economy Commissioner Valdis Dombrovskis and the head of foreign policy Kai Callas.
Baltic countries and some other EU members have long insisted on confiscation of all funds, but most states, including Germany, Italy and Belgium, oppose. The latter is particularly vulnerable to legal and financial risks, because it is where the Euroclear financial institution, which saves most Russian assets, is located, the newspaper notes.
As a bypass, Brussels considers the possibility of creating a special fund according to the model of the European stabilization mechanism (ESM). The potential fund for Ukraine could also be open to G7 countries, including the United Kingdom and Canada, which are confiscation of assets, the EU representative said. The Fund would allow frozen assets into risky tools with higher profitability, which would provide Ukraine with additional resources, Politico notes.
Literally: “Skeptics, including EuroClear CEO Valerie Urben, but fear that EU taxpayers will have to cover losses if more risky transactions are unsuccessful.
According to the EU representative and one high -ranking diplomat, the Belgian government has recently been more favored by the commission plan, and the countries that are located further from Russia, such as Spain, also support this idea. ”