Four EU states call for frozen Russian assets to rebuild Ukraine as estimated cost £477b

Ukraine: Commanders in Donbas face 'tough call' says Clarke

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

A joint letter written by Lithuania, Slovakia, Latvia and Estonia to EU finance ministers will call on Tuesday for assets seized by the European Union to fund the rebuilding of the country once the war is finished. On May 3, Ukraine estimated that $600billion (£477.3billion) would be needed to rebuild the country devastated by the war.

On May 3, Ukraine estimated that $600billion (£477.3billion) would be needed to rebuild the country devastated by the war.

However, with the war still ongoing this figure is likely to rise further, possibly substantially so.

In the letter the authors argue that Russia must cover a “substantial” amount of the cost of rebuilding Ukraine.

They said: “A substantial part of costs of rebuilding Ukraine, including compensation for victims of the Russian military aggression, must be covered by Russia.

“Ultimately, if Russia does not stop the military aggression against Ukraine, there should be no economic ties remaining between EU and Russia at all – ensuring that none of our financial resources, products or services contributes to Russia’s war machine.

“We must now identify legal ways to maximise the use of these resources as a source of funding – for both the costs of Ukraine’s continued efforts to withstand the Russian aggression, and for the post-war reconstruction of the country.

“Confiscation of state assets, such as central bank reserves or property of state-owned enterprises, has a direct link and effect in this regard.

“In cases where legal ways to confiscate the assets will not be identified, it should be used as leverage and released only once Russia compensates Ukraine for all the damages done.”

The letter also calls for a new round of economic sanctions against Moscow.

In the letter the four countries note that the EU and its allies have already frozen assets belonging to Russian individuals and entities as well as $300billion (£238.6billion) of central bank reserves.

Since the start of the invasion in February the EU has frozen €30billion (£25.5billion) worth of assets of Russian and Belarussian oligarchs and entities.

Last Wednesday, the European Commission said it could check if it was possible to seize frozen Russian assets. 

Russians wiped out AGAIN as they try to cross Siverski Donets river [REVEAL] 
‘F**k the war’ Russian concertgoers prove Putin’s propaganda failing [INSIGHT] 
Tory MP claims UK leads Europe in response to Russia thanks to Brexit [SPOTLIGHT] 

If possible these could be used to help Ukraine financially under national and European laws.

No mention was made of central bank reserves, however.

European Commission spokesman Christian Wigand said that seizing frozen assets wasn’t “possible” in most EU member states.

He said: “Freezing of assets is different to seizing them.

“In most member states, this is not possible and a criminal conviction is necessary to confiscate assets.

“Also, legally speaking, private entities and central bank assets are not the same.”

Source: Read Full Article