Germany aims to take frozen Russian funds in Frankfurt
Date
12/21/2023 8:16:28 AM
(MENAFN) Germany's federal prosecutor has taken decisive action by filing a motion aimed at seizing over 720 million euros (equivalent to USD789 million) of Russian funds that have been frozen in a Frankfurt bank account. The motivation behind this legal maneuver, initiated on July 7, stems from suspicions of an attempt to breach embargo regulations—a violation criminalized under the German Foreign Trade and Payments Act. The assets in question were deposited by a Russian financial institution, drawing scrutiny and prompting legal action from German authorities.
The backdrop to this significant move is rooted in geopolitical tensions that escalated with Russia's comprehensive invasion of Ukraine on February 24, 2022. In response to these hostilities, the European Union swiftly implemented a series of sanctions and restrictions targeting Russia across multiple sectors. These punitive measures encompassed the energy industry, banking sector, various companies, and financial markets. Furthermore, the sanctions regime extended to encompass over 1,000 Russian officials, subjecting them to asset freezes and travel restrictions.
A report from the news outlet Spiegel Online shed light on the German federal prosecutor's intentions regarding the seized funds. The primary objective is to redirect these assets into the state's coffers, thereby ensuring that funds allegedly linked to the financing of an "illegal war of aggression against Ukraine" do not remain unchallenged within German financial institutions. Justice Minister Marco Buschmann articulated this sentiment, emphasizing the principle that assets associated with entities fueling aggression should not find refuge in German accounts without repercussions.
Adding another layer of international collaboration to this scenario, the Council of the European Union, in a separate development in June 2022, incorporated the Russian financial institution—though not explicitly identified in the prosecutor's statement—into its Russia Embargo Order. Consequently, any assets affiliated with this entity that were lodged within European financial establishments became subject to stringent restrictions, effectively rendering them "frozen" and inaccessible for transactions.
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