Russian assets frozen after the invasion of Ukraine, in order to finance the purchase of weapons for kyiv. After Brussels’ announcement, Russia threatened the EU with legal action ” over decades “, calling the plan ” flight “.
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Between 2.5 billion and 3 billion euros just for 2024: this is the European Commission’s calculation of what immobilized Russian assets could bring in, reports our correspondent in Brussels, Pierre Benazet.
Since the invasion of Ukraine, some 260 billion euros in assets of the Russian central bank are frozen, two thirds of which – around 210 billion euros – are tied up in financial institutions in the European Union. Since February 15, these financial institutions, the credit depositories, have been prohibited from touching the profits generated by these assets – or from distributing dividends to shareholders.
But now, after a little more than two years of war, the Ukrainian army is undermanned and demanding munitions and air defense systems to contain an offensive Russian army. “ Summer will be decisive », underlined on this point Josep Borrell, who expects a major Russian offensive against Ukraine during this period. “ Everything will be decided this summer “, he insisted.
According to this proposal, the EU would tax financial institutions holding 97% of Russian assets, and pass them on to Ukraine: ultimately, these assets would be allocated to the reconstruction of Ukraine. But for 2024, 90% of the seized revenues would be intended for the European Peace Facility (EFF), which finances arms purchases. The remaining 10% would be paid to the EU budget for “ strengthening the capabilities of the Ukrainian defense industry ”, according to Josep Borrell.
The proposal is expected to be discussed by the leaders of the 27 member countries at a summit on Thursday March 21 and Friday March 22.
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Moscow threatens prosecution over decades » facing a “ flight »
Shortly after the plan was announced, Russia threatened legal action against the European Union. over decades “. “ Europeans must be well aware of the damage that such decisions could cause to their economy, their image, their reputation as reliable guarantors of the inviolability of property.warned Kremlin spokesperson Dmitri Peskov to the press. People, states, who will be involved in making such decisions, will naturally become the object of prosecution for many decades “, he added.
Russian diplomatic spokesperson Maria Zakharova denounced an initiative that amounts to “ banditry ” and ” flight “. “ These actions constitute a flagrant and unprecedented violation of fundamental international norms “, she said, promising a response from Moscow.
A legally secure plan?
But according to European officials, the plan submitted to the Twenty-Seven for their agreement is safe from a legal point of view, because there is no question of touching the capital itself, but only “ the profits made by a private operator », in this case the financial institution holding the Russian assets. According to them, these revenues are not the property of Russia.
According to these same sources, in the event of rapid agreement by EU member states, the measure could apply as early as July.
How to use Russian state assets, which were blocked after Russia launched its invasion of Ukraine in February 2022, is the subject of intense discussions. Some countries fear the consequences of such a seizure, whether it concerns income from Russian assets or, a fortiorion these holdings themselves, fearing the precedent this could set for financial markets.
Russia summoned the Swiss ambassador to Moscow last week to protest against the vote on measures in Switzerland intended to allow the use of Russian assets frozen on its territory to finance reparations in Ukraine.
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