(MENAFN) In a significant development stemming from the aftermath of the conflict in Ukraine, German authorities have taken steps to seize more than 720 million euros (equivalent to approximately 790 million dollars) of Russian assets currently frozen within Germany. The move was elucidated by the public prosecutor's office, which, in a statement on Wednesday, revealed its submission of a lawsuit to a Frankfurt court. This legal action seeks an "independent confiscation procedure" with the explicit objective of appropriating the aforementioned funds, which were held by a Russian financial entity in a Frankfurt-based bank account. The grounds for this action stem from suspicions of an attempted violation of the prevailing embargo.
Providing further context to the situation, reports from the German publication "Der Spiegel" indicated that these particular funds were housed with the German division of JP Morgan Chase Bank before making their way back to the Moscow Stock Exchange. The initiation of this confiscatory approach by German authorities was prompted by efforts from the Russian stock exchange to reclaim the assets, an action prohibited since the imposition of sanctions in 2022 following the onset of hostilities in Ukraine.
Highlighting the timeline of events, the Public Prosecutor's Office disclosed that its judicial request was formally lodged this past July. Historically, Germany has undertaken measures to freeze assets belonging to individuals and entities falling under sanction mandates. However, if the prosecution's pursuit proves successful, the reclaimed funds would be directed toward the federal budget. In the broader geopolitical context, Western allies, subsequent to the commencement of the Ukraine conflict, have frozen assets exceeding 300 billion euros belonging to the Russian Central Bank, alongside numerous assets associated with sanctioned entities or individuals.
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