The European Union (EU) has prepared a plan that includes operating Russia’s frozen assets of approximately $200 billion and using the proceeds to rebuild Ukraine.

According to news on the Politico website, the EU is considering investing in Russian assets, including central bank reserves frozen due to the war.

With this resource, the EU is exploring legal options to finance the reconstruction of Ukraine. Options include investing with Russian assets and using the proceeds in the Ukraine.

The EU Commission expects a return of about 2.6 percent from the operation of assets belonging to the Central Bank of Russia, frozen under sanctions. The initiative, which has not been implemented before, will have legal, political and economic consequences.

THEY MEET ON TUESDAY

EU countries established a working group to investigate what could be done in this area. Experts from EU countries will hold a meeting on Tuesday where they will discuss this issue.

The EU Commission conducted a study that analyzed the legal basis and associated risks of investing in Russian assets. The EU wants to act in coordination with the G7 countries because it fears that it will frighten investors in Europe by acting on its own.

Under the EU sanctions system, the seized assets must be returned to the owner with the contractually agreed returns, together with the principal, if the restrictive measures are lifted. The Commission is of the opinion that revenues in excess of contract yields may be forfeited.

200 BILLION DOLLARS IN ASSETS IN EUROPE

In Western countries, the reserves of the Russian central bank, amounting to 300 billion dollars, are frozen, and it is estimated that approximately 200 billion dollars are in EU countries.

The EU Commission is of the opinion that income can be generated by investing this money in short-term, liquid and high-yielding assets. However, in case of loss of such investments, the question of who will assume this risk is also among the issues to be evaluated. (AA)