The EU offered to think about using Russia’s frozen reserves in the reconstruction of Ukraine
Josep Borrell ,
KYIV. UkraineGate , 9 , May , 2022 | War News .
EU governments should consider withdrawing Russia’s frozen foreign exchange reserves to help cover Ukraine’s post-war reconstruction costs, EU High Representative for Foreign Affairs and Security Policy Joseph Borrell told the Financial Times. discusses how to force Moscow to pay for part of the damage caused by the conflict .
Details
Borrell said the United States had taken control of billions of dollars in assets belonging to the Afghan central bank, in part to potentially compensate victims of terrorism, as well as humanitarian aid to the country. and that it would be logical to consider similar steps with Russia’s reserves.
“I would be very much in favor, because it’s full of logic,” Borrel said. “We have money in our pockets, and someone has to explain to me why it’s good for Afghan money and bad for Russian money,” he added.
At the start of the war, the EU and its allies froze hundreds of billions of dollars in foreign exchange reserves held by Russia’s central bank. Russia said in March that sanctions against its central bank had frozen about $ 300 billion of its gold and foreign exchange reserves, which totaled more than $ 600 billion.
EU officials have questioned whether Russia’s reserves can be used in any way to rebuild Ukraine, but Brussels has not made any policy proposals on the issue. Borrell put forward this idea as one of the ways in which Russia could contribute.
Asked last month whether the money could be confiscated and used to rebuild Ukraine, US Treasury Secretary Janet Ellen said it was not something to be taken lightly, it should only be done in coordination with allies and that it could require new legislation. in the United States.
Borrel said the question of how to pay for Ukraine’s reconstruction is one of the key political issues, given the “incredible amount of money” that will be involved. He wanted the discussion on methods of providing “military compensation” to come from Russia.
The European Commission has said that the cost of recovery could reach hundreds of billions of euros, and Europe is expected to bear a significant share of this burden. He added that the sums raised at recent contribution conferences by Ukraine’s partners were simply a “drop in the ocean” compared to what would be needed.
US President Joe Biden has offered to sell the seized assets of the oligarchs to help rebuild Ukraine – this idea was also advocated last week by European Council President Charles Michel. European Commission officials are exploring ways to make it legally simpler, but the issue is not easy, given the urgent need to follow due process and not violate the legal rights of individuals, the newspaper said.
It is sometimes possible to confiscate assets after a conviction, but this requirement cannot be met just because someone has been sanctioned, the paper adds.
The idea of confiscating Russia’s foreign exchange reserves is said to be a dramatic move that is likely to worry other governments whose relations with the EU and its partners are strained.
But Borrel says it will not be unprecedented, citing a US decision to allocate $ 3.5 billion in frozen assets of the Afghan central bank for needs, including humanitarian aid and compensation to the families of 9/11 victims.
“This is one of the most important political issues on the table: who will pay for the reconstruction of Ukraine?” said Borrell.
Addition
The media previously reported that the European Union plans to establish a fund for the reconstruction of Ukraine. According to the report, Member States must be prepared to bear most of the costs of rebuilding the country, as the European Commission has informed them.
Source: Ukrgate
