The EU wants to use Russia’s frozen money

Ursula von der Leyen, President of the European Union (EU) Commission, and Charles Michel, President of the European Council, spoke at the press conference held at the end of the EU Leaders Summit in Brussels.

Noting that they discussed the frozen Russian assets at the summit, von der Leyen said: “The commission will prepare a proposal on the frozen assets. In this proposal, we will cautiously focus on the profits from the frozen assets of the Central Bank of Russia.” saying.

Von der Leyen claimed that Russia is responsible for the great destruction in Ukraine and must pay the price for it. he performed the assessment of it.

Von der Leyen stressed that they will take a cautious approach towards windfalls from Russian assets in close cooperation with international partners, noting that the European Central Bank (ECB) takes their views and concerns on this issue very seriously.

“WE MUST CONTINUE THE EFFORT TOGETHER”

EU Council President Michel said: “We must continue efforts with partners on the use of frozen assets for Ukraine.” he used the phrase.

“We think it would be fair to use some of this money for the future of Ukraine,” Michel said, emphasizing that they are very serious and have assessed all the elements of this situation in detail.

Michel stressed the importance of acting with like-minded partners on frozen assets.

The ECB warns the EU Commission

On the other hand, the ECB warned the EU Commission about the frozen assets of the Russian Central Bank 2 weeks ago.

The ECB warned that the confiscation of Russian assets or their proceeds could undermine the position of the euro as a world currency and financial stability.

Noting that, especially if the EU acts unilaterally, other central banks with large foreign exchange reserves may exit the euro, the ECB said euro-denominated assets may be withdrawn and funding costs for European countries may rise.

Western countries froze almost 300 billion euros from the Russian Central Bank as part of the war and the sanctions they imposed.

The assets of the Russian Central Bank for more than 200 billion euros are frozen by the EU countries. In addition, approximately 30 billion euros belonging to Russian individuals and companies were frozen in Europe.

Currently, the effects of using proceeds from frozen assets without the consent of the owner on international law, financial markets and international investors are being discussed.

Most of Russia’s Central Bank reserves frozen by the EU are held by Euroclear, a Belgium-based securities custody and clearing service. Euroclear’s assets on its balance sheet are claimed to have increased rapidly due to frozen assets and it provides a large amount of interest income.

The EU plan is expected to include a special tax on windfall interest income from Euroclear’s frozen Russian assets. (AA)