The G7 proposes to make the frozen assets of the Russian Federation collateral for granting loans to Ukraine
The president of the European Central Bank, Christine Lagarde, expressed concern about the idea of using frozen Russian assets to finance military aid to Ukraine, warning that it could lead to a violation of international law.
Her words about which informs Financial Times, reveal a split in the transatlantic community. On the one hand, the USA advocates the confiscation of all Russian reserves and their transfer to Ukraine. On the other hand, European officials, including Lagarde, fear that it could have serious legal consequences.
“I have seen four different schemes or proposals to circumvent what many lawyers or advocates – particularly in some administrations in this country – consider a very serious legal obstacle that could be interpreted as a violation of the legal international order“said Lagarde.
She emphasized that Russia should be responsible for the reconstruction of Ukraine at the expense of its own funds, but warned that the use of frozen assets of the aggressor state could lead to “a violation of international law that you want to protect and that you would like Russia to respect.”
Vice President of the European Commission Valdis Dombrovskis during the meeting of the ministers of foreign affairs of the EU member states in Italy, he said that the partners are also studying other options and conducting active discussions.
He expressed hope that the EU, where the main part of the frozen assets of the Russian Federation is stored, will in the coming months approve a decision on the use of profit or interest received from these assets to help Ukraine.
