(MENAFN) Kaja Kallas, the European Union's top diplomat, expressed skepticism about Russia ever reclaiming sovereign assets that were frozen by the EU due to the ongoing Ukraine conflict. In a recent interview with Politico, Kallas acknowledged that Russia technically has a “legitimate claim” to the frozen funds, but suggested that the EU should use these assets to help rebuild Ukraine before returning anything to Russia.

Kallas, a former Estonian prime minister, remarked that she doubted there would be any funds left to return. She did not clarify if she was referring to the principal assets or the interest generated by them. Since 2022, the US and its allies have frozen approximately $300 billion in Russian central bank assets, with around €197 billion ($213 billion) held at Euroclear in Brussels. These assets have generated €5.15 billion ($5.55 billion) in interest this fiscal year.

The European Union has already allocated part of this interest to Ukraine, with €1.5 billion provided in July for military aid. Another payment of approximately €1.9 billion is expected next spring. In addition, the G7 countries have agreed to send a $50 billion aid package to Ukraine, funded by the frozen Russian assets. The EU and the US have each committed significant portions to this fund.

Russia has condemned the freezing of its assets, with Deputy Foreign Minister Sergey Ryabkov labeling the transfer of $20 billion to Ukraine as "robbery." Kallas, who became the EU’s foreign policy chief on December 1, has been a strong advocate for tougher sanctions on Russia and is known for her firm stance against Moscow.

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