EU mulls indefinite asset freeze on Russian central bank as part of sanctions over Ukraine war
Date
7/24/2024 5:40:53 AM
(MENAFN) On Wednesday, European Union member states will convene to deliberate a proposal from the European Commission regarding the indefinite freezing of Russian central bank assets. This move is part of a broader European sanctions package aimed at addressing Russia's invasion of Ukraine. According to a document, the Commission believes that such a freeze would provide the G7 countries with the highest level of certainty in repaying loans they plan to extend to Ukraine using the profits from these frozen assets.
The proposal comes in the wake of the G7's decision to offer USD50 billion in loans to Ukraine, utilizing the returns from Russian central bank assets that have been frozen as part of sanctions. A news agency highlighted that this proposal specifically targets the portion of the Russian Central Bank's overseas assets held by European Union countries, which amounts to approximately 260 billion euros.
The Commission is also considering extending the asset freeze from the initially proposed six months to a more extended period of three years. This consideration aligns with the G7's recent summit decision, hosted by Italy, where member countries—including the United States, Britain, France, Italy, Japan, and Canada—agreed to utilize the proceeds from these frozen assets to support Ukraine's reconstruction efforts in the wake of the ongoing conflict that began in late February 2022.
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