The European Commission wants to use the Kremlin's frozen assets to defend against Russia in courts – Politico

The European Commission is considering allowing Euroclear to use a portion of frozen Russian assets (€192 billion) to secure a €45 billion loan to Ukraine. Such a decision could help cover legal costs and reduce the financial burden on the EU but requires the approval of all 27 member states.

This was reported by Politico. Euroclear, which holds significant amounts of Russian assets, is currently facing numerous lawsuits in Russian courts.

According to Euroclear, the lawsuits are focused on challenging the retention of Russian assets and claims for compensation. Although Russian courts do not have the authority to order the transfer of these assets to the plaintiffs, they can still put pressure on assets held in Russian financial institutions. This forces Euroclear to set aside a portion of its excess profits (about 10%) to cover legal costs associated with potential losses.

Currently, the volume of frozen assets managed by Euroclear is estimated at around €192 billion. The idea of using these assets in the current situation has both supporters and critics. On the one hand, it would reduce the burden on the European Commission's cash flows, as legal costs would be covered directly from Russian assets. On the other hand, such a step could create legal and reputational risks for European financial institutions.

Western financial institutions, including the European Central Bank, have already expressed concern that the transfer of ownership of Russian assets could weaken the eurozone's position as a reliable financial center. The risk of violating international law is also a concern for the European Commission, as it could undermine investor confidence in the euro as an international reserve currency. According to experts, such a strategy could lead to additional lawsuits and worsen the EU's position in relations with other states that are neutral in the conflict.

The European Commission will not be able to decide without the unanimous support of the 27 EU countries. Although the issue is urgent, certain countries, such as Hungary, may block the proposal, as well as a number of other sanctions measures discussed as part of the revision of the EU sanctions policy. According to representatives of the European Commission, this issue will be officially discussed as part of this process.

As OBOZ.UA previously reported, the results of the US presidential election may weaken international support for Ukraine. Republican Donald Trump has already declared his intention to force Ukraine to settle the war with Russia, but even if Democrat Kamala Harris wins, it will be difficult for her to get significant financial support from Congress.

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