Germany abandons EU plan to seize Russian assets - FT

The German government is against the plan of the European Commission (EC) to give Ukraine the profits from the frozen assets of the terrorist country Russia. According to the country's authorities, the hasty move might entail legal or financial risks.

The EC is working on a plan that could raise billions of euros by requiring financial institutions holding immobilized Russian assets to donate some of the proceeds to Ukraine's reconstruction. This is stated in the Financial Times article.

At the same time, after concerns expressed by the European Central Bank, Germany and other countries called for further reflection on the ideas. German Foreign Minister Annalena Berbock said the Russian Federation "will have to pay for the damage it has done to Ukraine," and stressed that the FRG is doing everything in its power to find and freeze the assets of Russian individuals and companies under sanctions.

But the idea of using Russian funds to renew Ukraine raises "complicated financial and legal questions," she added. Another official explained that if the EU were to take money from the Russian Central Bank or receive proceeds from the investment of funds, it would set a precedent for others, like Poland's claim to receive compensation from Berlin for losses during World War II.

Sources familiar with the discussions said that in a meeting with the EC on Wednesday, several diplomats urged caution, saying important questions needed to be answered before a formal proposal could be made.

As OBOZREVATEL reported earlier, the European Central Bank warned the EU leadership against confiscating frozen Russian assets. They said that the consequences could be significant.

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