Germany speaks out against it, Austria mentions economic disaster, banks fear "retaliation"

On June 26, Financial Times quoted sources as saying that Germany opposed the European Union's (EU) plan to use frozen assets of the Russian Central Bank to rebuild Ukraine.

Germany opposes using Russian assets to rebuild Ukraine. (Source: Getty Images)

Berlin has called for other options to be considered amid concerns that the decision could lead to legal and financial challenges.

Some members of the German government believe the plan does not have enough support to go ahead because the legal threats are “too high”.

“Berlin has been doing everything legally possible to identify and freeze the assets of sanctioned Russian citizens and entities,” wrote the Financial Times .

However, the EU's intention to use frozen Russian money to rebuild Ukraine's economy and infrastructure raises complex financial and legal questions."

The article added that the EU is looking to raise up to 3 billion euros ($3.3 billion) a year from holding assets of the Russian Central Bank, and Kiev proposed a solution for the EU to use the seized assets as collateral, through which it could borrow for investment and allocate money to Ukraine.

EU foreign ministers are expected to discuss the issue at a meeting in Luxembourg on June 26.

* Also related to the above issue, according to a Bloomberg document, the EU assesses that it is not possible to legally confiscate Russian assets, instead focusing on using these assets temporarily.

Austrian Foreign Minister Alexander Schallenberg called on the EU to be cautious.

“The EU’s actions could be challenged, possibly in European or US courts. If the EU loses in court, it would be an economic and diplomatic disaster,” he said in an interview with Bloomberg .

Some major global banks are concerned that the seizure of Russian assets could prompt Moscow to seek retaliation. One bank executive said Russia could make it harder for foreign banks to do business and target their local employees.

Source: https://baoquocte.vn/dung-tai-san-nga-tai-thiet-ukraine-duc-len-tieng-phan-doi-ao-nhac-ve-tham-hoa-kinh-te-ngan-hang-lo-bi-tra-dua-232401.html