Kallas supports the direction of $300 billion of frozen assets of the russian federation to restore Ukraine

The nominee for the European Union’s top foreign policy post said the bloc should tap some $300 billion in frozen Russian assets directly to fund the rebuilding of war-battered Ukraine.

Kaja Kallas, the former Estonian prime minister appointed to become the EU’s high representative, said member states should set aside qualms about direct asset seizures, citing Kyiv’s “legitimate claim” to the funds after being attacked by Russia.

“I will not use the word confiscation, because it’s really using the assets in a legal way,” Kallas told European Parliament lawmakers at a confirmation hearing in Brussels on Tuesday.

Her nomination needs to be approved by the assembly before she succeeds Josep Borrell.

“We recognize that russia has a legitimate claim toward us, because we have their assets but Ukraine also has a legitimate claim toward russia because, every day, they are destroying Ukraine,” Kallas said.

The Estonian signaled that Russia could have an option to “claim back” assets as part of a settlement — but added: “I doubt, considering what is going on, that there is anything left over.”

To taxpayers demanding how EU member states should pay for Ukraine’s reconstruction, Kallas said, “We shouldn’t. Those who are destroying Ukraine are paying for it.”

Kallas, 47, said Estonia’s initiative to assure that 0.25% of its gross domestic product be diverted to Kyiv should be adopted by other member states.

She also said EU sanctions against Russia should not be subject to renewal every six months — and should become indefinite until the 27 member states opt to lift them.

The Group of Seven forged an agreement this year to tap profits generated from the frozen Russian central bank assets, according to a plan that skirts any direct access to the funds. Some countries weighed the potential legal fallout of such a move and the risk to the euro, while others, including the US and UK, have rallied for bolder options, such as direct asset seizures.

Source: Bloomberg