EU Parliament supports bloc’s Russian asset confiscation strategy
Date
7/18/2024 4:37:30 AM
(MENAFN) The European Parliament has approved a European Union initiative aimed at utilizing the revenues generated from Russia's frozen sovereign assets to provide military support to Ukraine. This decision marks a significant step forward in the European Union's strategy to bolster Ukraine's defense capabilities amidst ongoing conflict with Russia.
Following months of deliberation and legal considerations, Brussels has agreed to redirect a portion of the interest accrued from these frozen funds to Kiev, as outlined in its recent resolution. The move underscores the European Union's commitment to supporting Ukraine "until victory," according to a press release issued by the Parliament after its first session since the European Union elections held last month.
Members of the European Parliament (MEPs) expressed approval for the European Union's efforts to repurpose revenues derived from the frozen Russian assets, emphasizing the necessity for a robust legal framework governing the confiscation of these state-owned assets. The resolution highlights the European Union's decision to immobilize approximately EUR210 billion of Russia's central bank reserves, predominantly held in Euroclear, a Brussels-based clearing house. Last year alone, these assets generated around EUR4.4 billion in interest.
In June, the European Union determined that a portion of these accrued interests would be allocated towards purchasing essential military equipment such as ammunition and aerial defense systems for Ukraine, further intensifying its support amid ongoing geopolitical tensions.
Russia, however, has vehemently opposed any actions targeting its sovereign assets, labeling such measures as "theft" and arguing that they violate international law. Moscow has also cautioned that aiding Kiev could exacerbate the conflict rather than facilitate a peaceful resolution.
The European Union's decision to utilize frozen Russian assets for military aid underscores its proactive stance in the Ukrainian crisis, despite ongoing objections and geopolitical ramifications raised by Moscow.
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