'Make Russia pay': EU moves ahead with confiscation of frozen assets, despite legal pitfalls
The European Union is stepping up work to confiscate the Russian-owned assets that have been frozen under EU sanctions and use them to finance the costly reconstruction of Ukraine.
The plans, which include re-investing the international reserves of the Russian Central Bank, represent a challenge without precedent for the bloc and are ridden with legal risks and obstacles.
"Russia must also pay financially for the devastation that it caused," said European Commission Ursula von der Leyen on Wednesday morning.
"Russia and its oligarchs have to compensate Ukraine for the damage and cover the costs for rebuilding the country."
The World Bank initially estimated the cost of reconstruction and recovery in Ukraine to be close to €350 billion, but the European Commission later put the figure around €600 billion. The number is expected to increase as the war goes on.
In the midst of an economic downturn, confiscating and selling frozen Russian assets has emerged as a potential avenue to raise money for the cash-strapped authorities in Kyiv.
Although they can be periodically renewed, EU sanctions are always temporary, which means the assets will have to be eventually returned to their original owners.
Before that happens, the Commission intends to establish a new framework to ensure confiscation becomes a solid, bulletproof solution to "make Russia pay," as von der Leyen put it.
In a working document sent to member states on Wednesday and seen by Euronews, the executive offers a starting point for discussions, which are poised to gain further traction next year.
"Russia's horrific crimes will not go unpunished," von der Leyen said.
The Russian assets frozen under EU sanctions are roughly divided into two main categories;
As of today, EU
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