Russia will retaliate if the European Union (EU) continues to seize frozen Russian assets, under sanctions against Moscow, and use such funds to fund Ukraine’s reconstruction, Russian diplomacy warned on Wednesday.
“We warn you once again that if the property of Russian citizens, companies or state reserves of our country is actually seized, Russia will inevitably take appropriate action,” Russian Foreign Ministry spokeswoman Maria Zakharova said. at the weekly press conference.
The official declined to say whether the retaliations would be symmetrical, but guaranteed they would be “mutual and real” and “not just words”.
“Responsibility for the consequences, including for the interests of European companies, will lie solely with Brussels,” he warned.
The European Commission has today proposed to member states the temporary seizure of assets frozen to oligarchs under the sanctions adopted against Russia and the corresponding application to finance the reconstruction of Ukraine.
According to data from Brussels, the total amount of Russian private assets frozen in the EU until November 25, under the common foreign and security policy, was almost €18.9 billion.
The immobilized foreign exchange reserves of the Russian Central Bank – both in the G7 (group of the seven richest countries) and in the EU – are estimated to total about USD 300 billion (about EUR 289 billion, at current exchange rates). ).
In a video released on the social network Twitter, European Commission President Ursula von der Leyen explained that the aim is to create a “structure to manage the seized assets” in the short term and to invest, using the profits to fund Ukraine.
Russia must pay for its heinous crimes.
We will work with the ICC and help establish a specialized court to try Russia’s crimes.
With our partners, we will ensure that Russia pays for the devastation it has caused, with the frozen assets of oligarchs and assets of its central bank pic.twitter.com/RL4Z0dfVE9
– Ursula von der Leyen (@vonderleyen) November 30, 2022
The World Bank estimates total damage in Ukraine between the start of the war and May 2022 to be around €350 billion, with “significant growth” in this figure as the war continues.
European law does not allow the seizure of frozen assets unless they are related to the commission of a crime. week.
On the other hand, Brussels has raised the possibility of channeling such revenues, obtained through Russian assets, into a fund or into the EU budget.
The creation of an international instrument for the temporary management of these assets was another possibility that was explored.
“The possibility of actively managing frozen assets, especially the liquid assets of state-owned enterprises and the Central Bank of Russia and related entities, could be explored with international partners who have adopted similar sanctions,” the European Commission defended.
This would allow “stable and predictable” income for Ukraine’s reconstruction, but would require the creation of financial instruments, “preferably at the international level,” Brussels added.
The idea would be to use this system temporarily until, say, a peace deal is reached between Ukraine and Russia, as international law stipulates that goods must be returned to their owner, in this case Moscow, once sanctions are lifted.
Portugal has EUR 18 million in frozen assets of people on the EU sanctions list
Foreign Minister João Gomes Cravinho stated this Wednesday that Portugal has about €18 million in frozen assets belonging to people on the European Union (EU) sanctions list over the conflict in Ukraine.
“We have seized, frozen in Portugal, assets belonging to people on the sanctions list in the order of 18 million euros,” announced the minister, addressing journalists on the sidelines of the meeting of the North Atlantic Council meeting with NATO foreign ministers in the Palace of Parliament in Romania’s capital and ends today.
Gomes Cravinho was asked about the European Commission’s proposal made today to European Union (EU) member states for the temporary seizure of assets frozen to oligarchs, in the context of the sanctions adopted against Russia, and the respective application for financing the reconstruction of Ukraine.
Stressing that he had not yet analyzed the proposals of the European Commission, Cravinho stressed that “with regard to the use, the loss of these assets in favor of the state and later in favor of the reconstruction of Ukraine” Portugal has its laws.
Gomes Cravinho stressed that there are circumstances in which assets are lost in favor of the state, citing as an example the case of drug traffickers who “see their vehicles or ships lost in favor of the state”.
“But we have our laws, Portugal is a rule of law and will function according to its laws. I still don’t know what the European Commission’s proposals are, we will certainly examine them. But a distinction must be made between freezing and loss of these assets in favor of the state, in favor of other purposes,” he stressed.
Cravinho noted that a court decision will always be needed, which must become final, emphasizing that “the mere fact that he is on a sanctions list does not mean that the sanctioned person loses the right to the assets, the assets are frozen”.
Russia invaded Ukraine on February 24 this year, triggering a war that plunged Europe into what is considered the most serious security crisis since World War II (1939-1945).
News updated at 19:04
Source: DN
