The EU is considering the possibility of confiscating russian assets to compensate Ukraine for damages

EU officials are discussing different ways to use russian assets within the framework of the International Compensation Commission.

This is a mechanism to be created under the auspices of the Council of Europe to compensate Ukrainians for losses from russian aggression; Ukraine predicted its launch in 2025.

The European Union is discussing a theoretical option of confiscating russia's frozen assets if it refuses to compensate for losses.

The value of the confiscated assets would be offset by russia's obligations to compensate for damages in a potential peace agreement, the agency's interlocutors said.

Another option being discussed in the European Union suggests that member states would be authorized to confiscate russia's sovereign assets to compensate for the destruction of Ukraine's energy infrastructure, the agency said in its report.

In this context, EU officials are looking into whether such confiscation is possible on the basis of, for example, a decision of the International Criminal Court and whether it complies with the criminal laws of EU member states.

The option of full confiscation of russian assets was rejected by some member states, including Germany and France, because of the legal and economic consequences of such a step.

The EU, the G7 countries and Australia have frozen about $280 billion of the russian central bank's assets in securities and cash, mostly through the Belgian clearinghouse Euroclear.

Sanctions imposed on russian nationals have resulted in an additional $58 billion in assets frozen.

Source: Bloomberg